CompInc Produces Two Products: a High-End Laptop Computer and an Inexpensive

question 113

Multiple Choice

CompInc. produces two products: a high-end laptop computer and an inexpensive laptop. The two products use two overhead activities, which have the following costs:
The controller has collected the expected annual prime costs for each product, the machine hours, the setup hours, and the expected production.
$\begin{array}{lr}\text { Setting up equipment } & \$ 8,000 \\\text { Machining } & 48,000\end{array}$ $$\begin{array} { l r r } & \text { High-end } & \text { Inexpensive } \\\text { Direct Labour } & \$ 24,000 & \$ 8,000 \\\text { Direct Materials } & 15,000 & 4,000 \\\text { Units } & 2,000 & 2,000 \\\text { Machine Hours } & 1,000 & 3,000 \\\text { Setup Hours } & 150 & 50\end{array}$$
-Refer to the Figure.What is the inexpensive laptop's consumption ratio for setup hours?

• A)0.25
• B)0.45
• C)0.50
• D)0.75

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