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.

Question

Quizplus · Accepted Answer

The question indicates that the setup costs are allocated to Strollers during the current month, but it does not provide any further information about what type of cost this is. Therefore, we can assume that the allocation is based on some predetermined method, such as direct labor hours or machine hours. Based on the information provided in the table, the total setup costs for the month are $36,145. To allocate these costs to Strollers, we need to multiply the setup cost rate of $3.05 per machine hour by the total machine hours for Strollers, which is 4,740. This gives us a total of $14,457. This is the closest answer choice to our calculation, so the best choice is C.

What Are the Setup Costs Allocated to Strollers During the Current