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:

ProductNumber of SetupsNumber of ComponentsNumber of Direct Labor Hours
Standard228375
Deluxe2812225
Cost PoolTotal CostsCost Driver
Setup Costs$30,000Number of setups
Assembly Costs$36,000Number of components
Labor Costs$9,000Number 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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