A firm produces and sells two products, Plus and Max. Thefollowing information is available relating to setup costs (a partof factory overhead):
Plus
Max
Units produced
200
16,000
Batch size (units)
10
400
Number of setups
20
40
Direct labor hours per unit
5
5
Total direct labor hours
1,000
80,000
Cost per setup
$1,080
Total setup cost
$64,800
Using number of setups as the activity base, the amount of setupcost allocated to each unit of product for Plus and Max,respectively is:
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