Question:
Starbright manufactures children car seats, strollers, and baby swings. Starbright manufacturing costs are budgeted as follows:
The company uses activity-based costing to allocate its manufacturing overhead costs to products based on the following schedule:
During the current month, the following levels of activities were incurred:
1. What are the setup costs allocated to Strollers during the current month?
A. $9,036.
B. $6,502.
C. $14,458.
D. Cannot be determined.
2. What are the factory foremen salaries allocated to Car Seats during the current month?
A. $11,607.
B. $26,786.
C. $36,607.
D. $75,000.
3. What are the factory utilities costs allocated to Baby Swings during the current month?
A. $210,000.
B. $51,808.
C. $34,016.
D. $19,177.
4. What are the total manufacturing overhead costs allocated to the Car Seats for the current month?
A. $69,837.
B. $102,873.
C. $37,290.