Please note that the following case will be repeated for multiple questions during the exam. Arizona Trucks makes two lines of trucks--Speedster and Economy. For each batch of product, a production order is prepared and machines are set-up. Parts are moved through the factory in batches, and the number of moves varies by product. Due to quality problems last year, each unit manufactured is inspected. The following budget projections pertain to AZ Trucks and the two products it will manufacture for the upcoming year: Budgeted Overhead Costs Production Orders Machine Set-Ups Material Handling Inspection Machine Maintenance Sum $18,000 52,000 31,500 22,500 35,000 $159,000 Additional Activity and Cost Information Speedster 1,000 Economy 750 5 5 Annual production volume Direct labor hours/unit Machine hours/unit Direct material cost/unit 10 10 $ 100 $100 $12 $12 Direct labor rate/hour Manufacturing batch size Number of moves (for each batch) 5 3 10 14 Laurenar satan Additional Activity and Cost Information Economy 750 5 Speedster 1.000 5 10 |$100 $12 10 $ 100 $12 Annual production volume Direct labor hours/unit Machine hours/unit Direct material cost/unit Direct labor rate/hour Manufacturing batch size Number of moves (for each batch) Hours per set-up Hours per inspection 15 3 10 4 12 1 1 Based on budgeted overhead costs, what is the annual set-up cost assigned to Speedster? $30,000 $52,000 $20,000 $28,000 $32,000