Question
Required information [The following information applies to the questions displayed below.] Starbright manufactures children car seats, strollers, and baby swings. Starbright's manufacturing costs are budgeted
Required information
[The following information applies to the questions displayed below.]
Starbright manufactures children car seats, strollers, and baby swings. Starbright's manufacturing costs are budgeted as follows:
Factory utilities $105,000
Factory foremen salaries $75,000
Machinery setup costs $30,000
Total manufacturing overhead $210,000
The company uses activity-based costing to allocate its manufacturing overhead costs to products based on the following schedule:
Overhead CostAllocation BaseEstimated Activity LevelFactory UtilitiesDirect labor hours14,258Factory foremen salariesMachine hours21,000Setup costsNumber of production runs83
During the current month, the following levels of activities were incurred:
Car
SeatsStrollersBaby SwingsTotalDirect Labor Costs$55,425$84,423$31,258$171,106Direct Labor Hours4,6197,0352,60414,258Machine Hours7,50010,2503,25021,000Production Runs25401883Units Produced1,5002,5007504,750
What are the setup costs allocated to Strollers during the current month?(Do not round intermediate calculations. Round your answer to the nearest dollar.)
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