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Carrol Company, which uses an activityminusbased costing system, produces travel trailers and boat trailers. The company allocates batch setup costs to the two products using
Carrol Company, which uses an activityminusbased costing system, produces travel trailers and boat trailers. The company allocates batch setup costs to the two products using the following basic data:
Travel trailers | Boat trailers | |
Budgeted units to be produced | 2 ,050 |
2,700
Budgeted number of setups | 310 |
550
Budgeted number of direct labor hours per unit | 70 |
80Total budgeted setup costs for the year are $ 157,400.If the setup costs are allocated using direct labor hours, how much of the total setup costs would be allocated to boat trailers?
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