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|
|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