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Question - Alpha Technology produces two products: a high end laptop under the label Excellent Laptops and an inexpensive desktop under the label Outstanding Computers. The two products use two overhead activities, with the following costs: Setting up equipment$3,000 Machining$15,000
The controller has collected the expected annual prime costs for each product, the machine hours, the setup hours, and the expected production.
Excellent Laptops Outstanding Computers Direct Labor $25,000 $10,000 Direct Materials $20,000 $5,000 Expected Production in Units 3,000 3,000 Machine Hours 850 2,000 Setup Hours 80 75
Calculate Outstanding Computer's consumption ratio for setup hours. (Note: Round answer to two decimal places.)
a. 0.48
b. 0.90
c. 0.25
d. 0.45
e. 0.75
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