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Trailers R Us Company, Which Uses an Activity-Based Costing System

Question 253

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Trailers R Us 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: Trailers R Us 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 $155,400. If the setup costs are allocated using number of setups, how much of the total setup costs would be allocated to boat trailers? A) $96,200 B) $59,200 C) $155,400 D) $379,250 Total budgeted setup costs for the year are $155,400.
If the setup costs are allocated using number of setups, how much of the total setup costs would be allocated to boat trailers?


A) $96,200
B) $59,200
C) $155,400
D) $379,250

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