Big Valley Company Produces Two Products

Big Valley Company produces two products. Big Valley Company used labor cost as a cost driver for support cost. Direct labor cost is estimated at $20 per hour. Products A and B require 5 and 9 hours of direct labor, respectively. Support cost is twice the direct labor cost. Big Valley Company recently installed a computer integrated manufacturing system. Because of this change, Big Valley Company's accountants believe that the number of components is a better cost driver for support costs. Cost per component is estimated at $80 per component, Products A and B use 3 and 4 components, respectively.
Compute the following:
a. the support cost allocated to Product A, if direct labor cost is used as the cost driver
b. the support cost allocated to Product B, if direct labor cost is used as the cost driver
c. the support cost allocated to Product A, if number of components is the cost driver
d. the support cost allocated to Product B, if number of components is the cost driver