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Starbright manufactures children 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:
During the current month,the following levels of activities were incurred:

-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. )
A)$11,607
B)$26,786
C)$36,607
D)$75,000

Question

[The following information applies to the questions displayed below.]
Starbright manufactures children 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:
  During the current month,the following levels of activities were incurred:
 
-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. )
A)$11,607 
B)$26,786 
C)$36,607 
D)$75,000

Quizplus · Accepted Answer

Factory foremen salaries are applied to production based on direct labor hours. Car Seats had 40% of the total direct labor hours, so it is allocated 40% of the $67,000 factory foremen salaries, which is $26,786.

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