The Estimated Overhead for the Cost Pool,machine Set-Ups,is $180 000

question 21

Multiple Choice

The estimated overhead for the cost pool,machine set-ups,is $180 000.The machines in the pool produce three products: X (300 set-ups) ; Y (200 set-ups) and Z (500 set-ups) .If 20 000 units of product X are produced,the amount of machine set-up costs that will be assigned to each unit of X is:

• A) $4.50
• B) $1.80
• C) $2.70
• D) $9.00

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