Assume that total costs assigned to the setup activity cost pool in June are $60,000 and 50 setups were completed in June. Further, assume that during June machines were setup 10 times to make product G10.
The total setup cost that would be assigned to product G10 would be:

Question

Quizplus · Accepted Answer

Cost per setup is $60,000 /50, or $1,200, and the setup cost assigned to product X5 is $1,200 x 10 = $12,000

Assume That Total Costs Assigned to the Setup Activity Cost