Hawn Company manufactures two models of pens, a standard model and a deluxe mode
ID: 2377338 • Letter: H
Question
Hawn Company manufactures two models of pens, a standard model and a deluxe model. Three activites have been identified in the production of the pens. The following information is available:
Product: Number of setups: Number of Components: Number of direct Labor Hours:
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Standard: 22, 8, 375
Deluxe 28, 12, 225
Cost Pool: Total Costs: Cost Driver:
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Setup Costs: $30,000 Number of setups
Assembly Costs $36,000 Number of components
Labor Costs $9,000 Number of direct labor hours
If activity-based costing is used, the seup cost assigned to the standard model is _______________.
A. $33
B. $44,000
C. $8,400
D. $13,200
Explanation / Answer
C. $8,400
A. $33
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