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

question 253

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 $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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