Figure 4-12 The Gardenview Corporation has identified the following overhead costs and activity drivers for next year:
The following are two of the jobs completed during the year:
The company's normal activity is 2,000 direct labor hours.
Refer to Figure 4-12. If the number of setups is used to assign setup costs, the amount of setup costs assigned to Job 6A would be

Question

Figure 4-12 The Gardenview Corporation has identified the following overhead costs and activity drivers for next year:
 The following are two of the jobs completed during the year:
 The company's normal activity is 2,000 direct labor hours.
Refer to Figure 4-12. If the number of setups is used to assign setup costs, the amount of setup costs assigned to Job 6A would be

Quizplus · Accepted Answer

The total setup cost for the year is $16,000 (8 setups x $2,000/setup). The amount of setup costs assigned to Job 6A would be ($16,000/20 setups) x 2 setups = $1,600. Therefore, the best choice is C.

Figure 4-12 the Gardenview Corporation Has Identified the Following Overhead