Alpha Technology produces two products: a high end laptop under the label Excellent Laptops and...
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Accounting
Alpha Technology produces two products: a high end laptop under the label Excellent Laptops and an inexpensive desktop under the label Outstanding Computers. The two products use two overhead activities, with the following costs:
Setting up equipment
$3,000
Machining
$15,000
The controller has collected the expected annual prime costs for each product, the machine hours, the setup hours, and the expected production.
Excellent Laptops
Outstanding Computers
Direct Labor
$25,000
$10,000
Direct Materials
$20,000
$5,000
Expected Production in Units
3,000
3,000
Machine Hours
850
2,000
Setup Hours
80
75
Calculate Outstanding Computer's consumption ratio for setup hours. (Note: Round answer to two decimal places.)
a.0.45
b.0.90
c.0.75
d.0.48
e.0.25
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