Alpha Technology produces two products: a high end laptop under the label Excellent Laptops and...

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Accounting

Alpha Technology produces two products: a high end laptop under the label Excellent Laptops and an inexpensive desktop under the label Outstanding Computers. The two products use two overhead activities, with the following costs:

Setting up equipment $3,000
Machining $15,000

The controller has collected the expected annual prime costs for each product, the machine hours, the setup hours, and the expected production.

Excellent Laptops Outstanding Computers
Direct Labor $25,000 $10,000
Direct Materials $20,000 $5,000
Expected Production in Units 3,000 3,000
Machine Hours 850 2,000
Setup Hours 80 75

Calculate Outstanding Computer's consumption ratio for setup hours. (Note: Round answer to two decimal places.)

a.0.45

b.0.90

c.0.75

d.0.48

e.0.25

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