Louis Corporation,which Uses an Activity-Based Costing System,produces Travel Trailers and Boat

question 172

Multiple Choice

Louis Corporation,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: $\begin{array}{|l|r|r|}\hline &\text { Travel trailers } & \text { Boat trailers } \\\hline \text { Budgeted units to be produced } & 2,000 & 3,000 \\\hline \text { Budgeted number of setups } & 380 & 420 \\\hline \text { Budgeted number of direct labor hours per unit } & 20 & 10\\\hline\end{array}$ Total budgeted setup costs for the year are $140,000.
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If the setup costs are allocated using number of setups,how much of the total setup costs would be allocated to boat trailers?

• A)$ 66,500
• B)$ 73,500
• C)$ 140,000
• D)$ 294,737

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Definitions:

Serial Communications Interface

A type of data transfer where information is sent sequentially, one bit at a time, over a communication channel.

WT ECU

A Weight Terminal Electronic Control Unit; a device designed for managing and monitoring weight-related data in vehicular and industrial systems.

Cruise Control

An electronic system that automatically controls the speed of a vehicle, maintaining a consistent speed as set by the driver.

Electrical Circuit

An electrical circuit is a pathway or loop that allows for the flow of electric current, consisting of sources, connections, and electrical components.