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 number of setups, how much of the total setup costs would be allocated to boat trailers?
A)$98,560
B)$59,840
C)$158,400
D)$419,294

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 number of setups, how much of the total setup costs would be allocated to boat trailers?
A)$98,560 
B)$59,840 
C)$158,400 
D)$419,294

Quizplus · Accepted Answer

The Answer of 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 number of setups, how much of the total setup costs would be allocated to boat trailers?
A)$98,560 
B)$59,840 
C)$158,400 
D)$419,294

Carrol Company, Which Uses an Activity-Based Costing System, Produces Travel