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Determine the setup cost portion of overhead

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Question - A firm produces and sells two products, Plus and Max. The following information is available relating to setup costs (a part of factory overhead).

 

Plus

Max

Units produced

200

17,600

Batch size (units)

20

550

Number of setups

10

32

DL hours per unit

6

6

Total DL hours

1200

105,600

Cost per setup $2,136

Total setup costs $89,712

Using direct labor hours as the allocation base, determine the setup cost portion of overhead that is allocated to each unit of product for Plus and Max, respectively?

Reference no: EM132793255

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