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

Question 24

Multiple Choice

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 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 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

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