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Starbright manufactures child 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
Starbright manufactures child 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 Cost Factory Utilities Factory foremen salaries Setup costs Allocation Base Direct labor-hours Machine hours Number of production runs During the current month, the following levels of activities were incurred: Direct Labor Costs Direct Labor Hours Machine Hours Production Runs Units Produced Car Seats $ 55,425 4,619 7,500 25 1,500 Strollers $ 84,423 7,035 10,250 40 2,500 Baby Swings $ 31,258 2,604 3,250 18 750 Estimated Activity Level 14,258 21,000 83 Total $ 171,106 14, 258 21,000 83 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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