Question

Required information (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: Overhead Cost Factory Utilities Factory foremen salaries Setup costo Allocation Base Direct labor hours Machine hours Number of production runs Estimated Activity Level 14,258 21,000 83 During the current month, the following levels of activities were incurred: Car Baby Seats Strollers Swings Total Direct Labor Costs $55,425 584,423 $31,258 $ 171, 106 Direct Labor WODES 4,619 7,035 2.604 14.258 Machine Hours 7,500 10,250 3,250 21,000 Production Runs 25 40 18 83 Units Produced 1,500 2,500 750 4,750 What are the factory foremen salaries allocated to Car Seats during the current month? (Do not round intermediate calculations. Round your answer to the nearest dollar.)

Answer 1

Dete * Calculation in Activity rate Estimated factory Foreman Salarie Estimated machine hown Factory Foreman Salaries = $75000 21000 $3.5714per mu factory Foremen Salaries allocated to car seats = Activity y Rate machine how wed in Carseats 3.5714X 7500 $ 26786 - First Calculate achvity rate by dividing estimated Cost by estimated allocation base than multiply ply multiply activity leate with allocation base wage.