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emmainna [20.7K]
3 years ago
14

Assume that total costs assigned to the setup activity cost pool in March are $120,000 and 100 setups were completed in March. F

urther, assume that during March machines were setup 20 times to make product X5.
The total setup cost that would be assigned to product X5 would be:

A. $ 1,600
B. $16,000
C. $24,000
D. Cannot be determined
Business
1 answer:
nadezda [96]3 years ago
6 0

Answer:

C) $24,000

Explanation:

Each individual setup cost is equal to the total cost assigned to setups divided by the actual setups completed during the period:

individual setup cost = total costs assigned to setups / setups completed = $120,000 / 100 setups = $1,200 per setup

If each setup costs $1,200 and product X5 required 20 setups, then the total amount assigned to X5 setups = $1,200 x 20 = $24,000

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Explanation:

Step 1 :

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