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: Total budgeted setup costs for the year are $155,400.
If the setup costs are allocated using number of setups, how much of the total setup costs would be allocated to boat trailers?
A)$96,200
B)$59,200
C)$155,400
D)$379,250

Question

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:  Total budgeted setup costs for the year are $155,400.
If the setup costs are allocated using number of setups, how much of the total setup costs would be allocated to boat trailers?
A)$96,200 
B)$59,200 
C)$155,400 
D)$379,250

Quizplus · Accepted Answer

The Answer of 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:  Total budgeted setup costs for the year are $155,400.
If the setup costs are allocated using number of setups, how much of the total setup costs would be allocated to boat trailers?
A)$96,200 
B)$59,200 
C)$155,400 
D)$379,250

Trailers R Us Company, Which Uses an Activity-Based Costing System