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

Question 83

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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: 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 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

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