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Direct Labor Cost Is the Primary Cost Driver of Support

Question 79

Short Answer

Direct labor cost is the primary cost driver of support costs for two products.Product One has direct labor costs of $8.50 per unit and Product Two has direct labor costs of $130 per unit.The support costs assigned to each product is the direct labor cost times five.What is the support cost assigned to Product One and Product Two?
 Product One  Product Two A) $8.50$130 B) $5.00$76.47 C) $42.50$650 D) $5.00$26.00\begin{array}{lll}&\text { Product One }&\text { Product Two}\\\text { A) } & \$ 8.50 & \$ 130 \\\text { B) } & \$ 5.00 & \$ 76.47 \\\text { C) } & \$ 42.50 & \$ 650 \\\text { D) } & \$ 5.00 & \$ 26.00\end{array}

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