Question
Starbright manufactures child car seats, strollers, and baby swings. Starbright's manufacturing costs are budgeted as follows: Factory utilities: $95,000 Factory foremen salaries: $92,000 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: $92,000
Machinery setup costs: $36,000
Total manufacturing overhead: $223,000
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 | 14,980 |
Factory foremen salaries | Machine hours | 18,950 |
Setup costs | Number of production runs | 171 |
During the current month, the following levels of activities were incurred:
Car Seats | Strollers | Baby Swings | Total | |
---|---|---|---|---|
Direct Labor Costs | $ 70,060 | $ 120,900 | $ 41,230 | $ 232,190 |
Direct Labor Hours | 4,520 | 7,800 | 2,660 | 14,980 |
Machine Hours | 5,750 | 9,200 | 4,000 | 18,950 |
Production Runs | 45 | 74 | 52 | 171 |
Units Produced | 1,700 | 3,600 | 1,090 | 6,390 |
What are the factory foremen salaries allocated to Car Seats during the current month? (Do not round intermediate calculations. Round your answer to the nearest dollar.)
Multiple Choice
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$92,000
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$44,665
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$27,916
-
$19,419
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