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Franklin Manufacturing Manufactures Two Models of Windows,bay Windows and Casement

Question 104

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Franklin Manufacturing manufactures two models of windows,bay windows and casement windows.Franklin uses an activity basedactivity-based costing system.The following information about the activities used to producet the company's products has been provided. Produce
Agree.Changed.JMF  Category  Estimated Cost  Cost Driver  Bay Windows  Casement  Unit-level $125,000 Labor hours 750500 Batch-level $75,000 Inspections 3020 Product-level $35,000 Storage Space 3500 sq feet 2100 sq feet  Facility-level $165,000 Machine hours 9,0006,000\begin{array}{|l|c|c|c|c|}\hline {\text { Category }} & {\text { Estimated Cost }} & \text { Cost Driver } & \text { Bay Windows } & \text { Casement } \\\hline \text { Unit-level } & \$ 125,000 & \text { Labor hours } & 750 & 500 \\\hline \text { Batch-level } & \$ 75,000 & \text { Inspections } & 30 & 20 \\\hline \text { Product-level } & \$ 35,000 & \text { Storage Space } & 3500 \text { sq feet } & 2100 \text { sq feet } \\\hline \text { Facility-level } & \$ 165,000 & \text { Machine hours } & 9,000 & 6,000 \\\hline\end{array} The amount of batch-level cost that should be allocated to the bay windows equals:


A) $30,000.
B) $45,000.
C) $75,000.
D) $7,500.
Produce
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