Question: If the setup costs are allocated using direct labor hours, how much of the total setup costs would be allocated to boat trailers? Trailers R

If the setup costs are allocated using direct labor hours, how much of the total setup costs would be allocated to boat trailers?

Trailers R Us Company, which uses an activity- based costing system, produces travel trailers and boat trailers. The company allocates batch setup costs to the two products using the following basic data: Budgeted units to be produced Budgeted number of setups Budgeted number of direct labor hours per unit Total budgeted setup costs for the year are $161,400 Travel trailersBoat trailers 2,900 530 60 2,350 320 30 If the setup costs are allocated using direct labor hours, how much of the total setup costs would be allocated to boat trailers? OA. $114,861 O B. S398349 OC. $226,795 O D. $161,400

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

13) If the setup costs are allocated using direct labor hours, how much of the total set up costs would be allocated to boat trailers? (Need Calculations)

Roomrunner Security Solutions (RSS) is a global leader in the market for security monitoring systems. The company offers its clients two platform" products: (i) camera - a simple motion-detector...

To compare plantwide and departmental overhead allocation methods. Information: All of WCBs overhead has traditionally been allocated using direct labor hours as the plantwide driver, so the company...

5. You manufacture two types of white paint: Gloss and Flat. You are allocating MOH using ABC costing, and you use three cost pools: (1) Material Handling, (2) Machine Setup, and (3) Inspection Total...

Problem 3 (Textbook Reference: P4-4) Activity-based costing versus traditional costing C&W Corporation manufactures travel clocks and watches. Overhead costs are currently allocated using direct-...

1. Thunder Creek Company prepares its Manufacturing Overhead Budget For each Grect labor hour, the variable overhead costs are: Indirect Materials - $1.00 per DH, Indirect Labor Cost-$130 per...

EcoFabrics has budgeted overhead costs of $ 1,105,650. It has assigned overhead on a plantwide basis to its two products (wool and cotton) using direct labor hours which are estimated to be 526,500...

Violet Sales Corp, reports the year end information from 2018 as follows: Sales (35,250 units) Cost of goods sold Gross margin Operating expenses Operating income $282,000 106,000 176,000 153,000...

Thatcher Women's Clothing of Manchester, England, specializes in designer skirts which it manufac- tures to customer order. The budgeted data (in British pounds) for its main plant for 1996 are:...

Public Administration is a two-way street. On one end are those who govern, whose honesty, morality, competence and diligence are a must. On the other end are the governed, whose obedience,...

25.7 The composition of a liquid-phase reaction 2 AB was followed by a spectrophotometric method with the following results: t/min 10 20 30 40 00 [B]/(mol L-1) 0.089 0.153 0.200 0.230 0.312 Determine...

1 . Consider a 5 - year bond with $ 1 , 0 0 0 face value with a 9 . 5 % coupon rate paid semiannually. This face value is split evenly to create a floating rate bond which pays a coupon equal to the...

A Is it crucial that an employer know how long it took you to earn your B.A.? Is it unethical to simply note the date you finished it?

3. A member of a group you belong to suggests that everyone contribute $50 for a wedding present for another member. A. Wow, thats pretty generous! B. What specifically are we going to buy? C. Im...

4. Youre asked to give a speech about your athletic success to a high school sports team. A. Im no good at that sort of thing. B. What goal do you have in mind? C. I cant commit to speaking this fall.