Trailers R Us Company, which uses an activity-based costing system, produces travel trailers and boat...
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Accounting
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:
Travel trailers
Boat trailers
Budgeted units to be produced
2350
2900
Budgeted number of setups
320
530
Budgeted number of direct labor hours per unit
30
60
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?
$226,795
$398,349
$114,861
$161,400
QUESTION 2
Non-value-added activities include all of the following EXCEPT
assembling the products.
inspection of the product.
storing of raw materials.
movement of parts within the warehouse.
Answer & Explanation
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