Sunflower, Inc. uses activity-based costing. The company produces two products, A and B. Information relating to the
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Sunflower, Inc. uses activity-based costing. The company produces two products, A and B. Information relating to the two products is as follows:
| A | B | |
|---|---|---|
| Units produced | 19,000 | 25,000 |
| Machine-hours | 7,500 | 8,500 |
| Direct labor-hours | 8,000 | 12,000 |
| Materials handling (number of moves) | 4,000 | 6,000 |
| Setups | 5,000 | 7,000 |
The following total costs are reported:
| Materials handling | $160,000 | |
| Labor-related overhead | $480,000 | |
| Setups | $300,000 |
Setup costs assigned to B are:
a. $144,000
b. $140,000
c. $112,000
d. $175,000
Expert Answer:
Related Book For 
Cost Management Measuring Monitoring and Motivating Performance
ISBN: 978-0470769423
2nd edition
Authors: Leslie G. Eldenburg, Susan K. Wolcott
Posted Date:
