Carrol 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:

Total budgeted setup costs for the year are $158,400.
If the setup costs are allocated using direct labor hours,how much of the total setup costs would be allocated to boat trailers?
A)$158,400
B)$104,400
C)$240,331
D)$306,240

Question

Carrol 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:

Total budgeted setup costs for the year are $158,400.
If the setup costs are allocated using direct labor hours,how much of the total setup costs would be allocated to boat trailers?
A)$158,400 
B)$104,400 
C)$240,331 
D)$306,240

Quizplus · Accepted Answer

B) 11ea7fd5_66be_4ac8_99dd_cddd3bf35326_TB1766_00

Carrol Company,which Uses an Activity-Based Costing System,produces Travel Trailers and Boat