Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Starbright manufactures child car seats, strollers, and baby swings. Starbright's manufacturing costs are budgeted as follows: Factory utilities: $95,000 Factory foremen salaries: $93,000 Machinery setup
Starbright manufactures child car seats, strollers, and baby swings. Starbright's manufacturing costs are budgeted as follows: Factory utilities: $95,000 Factory foremen salaries: $93,000 Machinery setup costs: $37,000 Total manufacturing overhead: $225,000 The company uses activity-based costing to allocate its manufacturing overhead costs to products based on the following schedule: Estimated Activity Overhead Cost Allocation Base Level Factory Utilities Factory foremen salaries Direct labor-hours Machine hours 15,060 19,300 Setup costs Number of production runs 175 During the current month, the following levels of activities were incurred: Direct Labor Costs Direct Labor Hours Machine Hours Car Seats $ 74,910 4,540 5,800 Strollers. $ 129,525 Baby Swings $ 44,055 Total $ 248,490 Production Runs 45 Units Produced 1,800 7,850 9,400 76 3,700 What are the setup costs allocated to Strollers during the current month? (Do not round intermediate calculations. Round your answer to the nearest dollar.) 2,670 4,10p 54 1,110 15,060) 19,300 175 6,610
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started