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Louie's Music Co B) C) D)

Question 23

Multiple Choice

Louie's Music Co.produces three types of harmonicas: the junior model,the standard model and the professional model.The junior model requires 8 setups,the standard model requires 12 setups and the professional model requires 20 setups.The company expects to incur overhead costs of $28,000 where the cost driver is machine setups.How much overhead is assigned to each product?


A)  Junior Model  Standard Model  Professional Model $9,333$9,333$9,334\begin{array} { | c | c | c | } \hline \text { Junior Model } & \text { Standard Model } & \text { Professional Model } \\\hline \$ 9,333 & \$ 9,333 & \$ 9,334 \\\hline\end{array}
B)  Junior Model  Standard Model  Professional Model $7,000$7,000$14,000\begin{array} { | c | c | c | } \hline \text { Junior Model } & \text { Standard Model } & \text { Professional Model } \\\hline \$ 7,000 & \$ 7,000 & \$ 14,000 \\\hline\end{array}
C)  Junior Model  Standard Model  Professional Model $5,600$8,400$14,000\begin{array} { | c | c | c | } \hline \text { Junior Model } & \text { Standard Model } & \text { Professional Model } \\\hline \$ 5,600 & \$ 8,400 & \$ 14,000 \\\hline\end{array}
D)  Junior Model  Standard Model  Professional Model $3,500$7,000$17,500\begin{array} { | c | c | c | } \hline \text { Junior Model } & \text { Standard Model } & \text { Professional Model } \\\hline \$ 3,500 & \$ 7,000 & \$ 17,500 \\\hline\end{array}

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