Brannock Company makes steel and titanium handle bars for bicycles. It requires

Question

Brannock Company makes steel and titanium handle bars for bicycles. It requires approximately 1 hour of labor to make one handle bar of either type. During the most recent accounting period, the company made 8,100 steel bars and 1,900 titanium bars. Setup costs amounted to $47,000 for the 26 batches (i.e., 13 of each type) of bars produced during the period. If activity-based costing is used to allocate overhead costs to the two products, the amount of setup cost assigned to the titanium bars will be: $47,000. $8,930. $23,500. $38,070.

Explanation / Answer

$23,500

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