Question: Michael Company manufactures two models of pens, a standard model and a deluxe model. Three activities have been identified in the production of the

Michael Company manufactures two models of pens, a standard model and a

Michael Company manufactures two models of pens, a standard model and a deluxe model. Three activities have been identified in the production of the pens. The following information is available: Number of Components Number of Number of Direct Product Setups Labor Hours Standard 22 375 8 Deluxe 28 12 225 Cost Pool Total Costs Cost Driver Number of setups Setup Costs Assembly Costs $15,000 $36,000 Number of components Labor Costs $9,000 Number of direct labor hours O A. $33,375 O B. $26,625 C. $37,500 D. $22,500

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