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Stanley Company has identified the following activities related to indirect production costs: Activity Activity Costs...

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Accounting

Stanley Company has identified the following activities related to indirect production costs: Activity Activity Costs Cost Drivers Machine Setup $180,000 1,500 setup hours Materials Handling $50,000 12,500 pounds of materials Electric Power $20,000 20,000 kilowatt hours Stanley Company has obtained the following data concerning two products: Product 1 Product 2 Number of units produced 4,000 20,000 Direct materials cost $20,000 $25,000 Direct labor cost $12,000 $20,000 Number of setup hours 100 120 Pounds of materials used 500 1,500 Kilowatt-hours 1,000 2,000 Using an activity-based costing system, what amount of materials handling cost is assigned to Products 1 and 2? Product 1 Product 2

$12,500 $37,500

$2,000 $6,000

$20,000 $30,000

$8,333 $41,667

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