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In 207 the Black Company incurred $3,900,000 in set-up costs. It spent 80,000 hours on...

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Accounting

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In 207 the Black Company incurred $3,900,000 in set-up costs. It spent 80,000 hours on set-up to produce 500,000 units that year. In 208 Black expects to need 81,250 hours of set-up to produce 520,000 units. Using activity-based budgeting and 207 cost data, what would Black budget for set-up costs equal in 208 ? A. $4,056,000 B. $3,960,938 C. $3,840,000 D. $3,750,000

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