Coronado Company manufactures two models of its hammock, the Superior and the Deluxe. The Superior...
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Coronado Company manufactures two models of its hammock, the Superior and the Deluxe. The Superior model requires 10500 direct labour hours and the Deluxe requires 40600 direct labour hours. The company produces 3000 units of the Superior model and 1000 units of the Deluxe model each year. The company produces the Superior model in batch sizes of 200, while it produces the Deluxe model in batch sizes of 100 . The company expects to incur $110000 of total setup costs this year. How much of the setup costs are allocated to the Superior model using ABC costing? $27500$66000$48400$100000
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Coronado Company manufactures two models of its hammock, the Superior and the Deluxe. The Superior model requires 10500 direct labour hours and the Deluxe requires 40600 direct labour hours. The company produces 3000 units of the Superior model and 1000 units of the Deluxe model each year. The company produces the Superior model in batch sizes of 200, while it produces the Deluxe model in batch sizes of 100 . The company expects to incur $110000 of total setup costs this year. How much of the setup costs are allocated to the Superior model using ABC costing? $27500$66000$48400$100000 