Question
Required information [The following information applies to the questions displayed below.] Starbright manufactures children car seats, strollers, and baby swings. Starbrights manufacturing costs are budgeted
Required information
[The following information applies to the questions displayed below.]
Starbright manufactures children car seats, strollers, and baby swings. Starbrights 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 Cost | Allocation Base | Estimated Activity Level |
Factory Utilities | Direct labor hours | 14,258 |
Factory foremen salaries | Machine hours | 21,000 |
Setup costs | Number of production runs | 83 |
During the current month, the following levels of activities were incurred:
Car Seats | Strollers | Baby Swings | Total | |||||||||
Direct Labor Costs | $ | 55,425 | $ | 84,423 | $ | 31,258 | $ | 171,106 | ||||
Direct Labor Hours | 4,619 | 7,035 | 2,604 | 14,258 | ||||||||
Machine Hours | 7,500 | 10,250 | 3,250 | 21,000 | ||||||||
Production Runs | 25 | 40 | 18 | 83 | ||||||||
Units Produced | 1,500 | 2,500 | 750 | 4,750 | ||||||||
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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