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

question 35

Multiple Choice

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 $161,400.
If the setup costs are allocated using direct labor hours, how much of the total setup costs would be allocated to boat trailers?

• A)$161,400
• B)$114,861
• C)$226,795
• D)$398,349

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Definitions:

Rewards

Benefits or compensations provided in response to someone's action, effort, or behavior, often used as a motivational tool.

Realistic Goals

Objectives set based on an accurate understanding of abilities and constraints, achievable within a given timeframe.

Behavior Change

The process of altering behaviors, often aiming to replace unhealthy habits with beneficial ones for overall well-being.

Enabling Factors

Components or conditions that make it possible or easier for individuals or populations to adopt and maintain health behaviors.