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What setup costs assigned to model are

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Reference no: EM132523998

Carriage Manufacturing uses an activity-based costing system. The company produces Model 21 and Model 22. Information relating to the two products is as follows:

                                                         Model 21                           Model 22

Units produced                        24,000                              30,000

Machine hours                         7,500                                8,500

Direct labor hours                   8,000                               12,000

Material handling

(number of moves)                4,000                                6,000

Setups                                  5,000                            7,000

The following costs are reported:

Material handling$ 40,000

Labor-related overhead120,000

Setups60,000

Question 1: Setup costs assigned to Model 22 are

a.$36,000.

b.$25,000.

c.$28,000.

d.$35,000.

Reference no: EM132523998

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