Timothy Company manufactures two models of pens, a standard model and a deluxe model. Three activities have been identified in the production of the
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
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