Matthew 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 $15,000 Number of setups
Assembly Costs $36,000 Number of components
Labor Costs $9,000 Number of direct labor hours
If activity minusbased costing is used, the total costs assigned to the standard model are:
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Matthew Company manufactures two models of pens, a standard model and a deluxe model. Three activiti...
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