Timothy Company manufactures two models of pens, a standard model and a deluxe model. Three activities have been identified in the production of the pens. The following information is available:
| Product |
Number of Setups |
Number of Components |
Number of Direct Labor Hours |
|
| Standard |
22 |
8 |
375 |
|
| Deluxe |
28 |
12 |
225 |
|
| Cost Pool |
Total Costs |
|
Cost Driver |
|
| Setup Costs |
$30,000 |
|
Number of setups |
|
| Assembly Costs |
$36,000 |
|
Number of components |
|
| Labor Costs |
$9,000 |
|
Number of direct labor hours |
|
If activityminus-based costing is used, the setup cost assigned to the standard model is ________.
$13,200 B. $33
C. $44,000
D. $8,400