[The Following Information Applies to the Questions Displayed Below

question 103

Multiple Choice

[The following information applies to the questions displayed below.]
Starbright manufactures children car seats,strollers,and baby swings.Starbright's manufacturing costs are budgeted as follows:
Factory utilities $105,000
Factory foremen salaries $75,000
Machinery setup costs $30,000
Total manufacturing overhead $210,000
The company uses activity-based costing to allocate its manufacturing overhead costs to products based on the following schedule:
During the current month,the following levels of activities were incurred:

-What are the setup costs allocated to Strollers during the current month? (Do not round intermediate calculations.Round your answer to the nearest dollar. )

• A)$9,036
• B)$6,502
• C)$14,458
• D)$16,265

---

Definitions:

Encoding-Specificity Principle

The Encoding-Specificity Principle suggests that memory recall is most effective when information available at the time of recall is similar to the information present at the time of encoding.

Subjective

Relating to experiences, perspectives, or perceptions that are influenced by personal feelings, tastes, or opinions.

Objective

Pertains to observations or measures that are not influenced by the observer's feelings, interpretations, or prejudice, and thus considered unbiased.

Inaccurate

Not correct, precise, or true; containing errors or mistakes.