Starbright manufactures child car seats, strollers, and baby swings. Starbright's manufacturing costs are budgeted as follows: Factory utilities: $90,000 Factory foremen salaries: $91,000 Machinery setup costs: $35,000 Total manufacturing overhead: $216,000 The company uses activity-based costing to allocate its manufacturing overhead costs to products based on the following schedule: Overhead Cost Direct Labor Costs Direct Labor Hours Machine Hours Production Runs Units Produced Allocation Base Direct labor-hours Machine hours Number of production runs Factory Utilities Factory foremen salaries Setup costs During the current month, the following levels of activities were incurred: Car Seats $ 65,250 4,500 5,700 45 1,600 Strollers $ 112,375 7,750 9,000 72 3,500 Baby Swings $ 38,425 2,650 3,900 50 1,070 Estimate Activity Level What are the factory utilities costs allocated to Baby Swings during the current month? (Do not round into calculations. Round your answer to the nearest dollar.) 14,900 18,600 167 Total $ 216,050 14,900 18,600 167 6,170

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Starbright manufactures child car seats, strollers, and baby swings. Starbright's manufacturing costs are
budgeted as follows:
Factory utilities: $90,000
Factory foremen salaries: $91,000
Machinery setup costs: $35,000
Total manufacturing overhead: $216,000
The company uses activity-based costing to allocate its manufacturing overhead costs to products based on
the following schedule:
Overhead Cost
Direct Labor Costs
Direct Labor Hours
Machine Hours
Production Runs
Units Produced
Allocation Base
Direct labor-hours
Machine hours
Number of production runs
Factory Utilities
Factory foremen salaries
Setup costs
During the current month, the following levels of activities were incurred:
Car Seats
$ 65,250
4,500
5,700
45
1,600
Strollers.
$ 112,375
7,750
9,000
72
3,500
Baby Swings
$ 38,425
2,650
3,900
50
1,070
What are the factory utilities costs allocated to Baby Swings during the current month? (Do not round
intermediate calculations. Round your answer to the nearest dollar.)
Estimated
Activity
Level
14,900
18,600
167
Total
$ 216,050
14,900
18,600
167
6,170
Transcribed Image Text:Starbright manufactures child car seats, strollers, and baby swings. Starbright's manufacturing costs are budgeted as follows: Factory utilities: $90,000 Factory foremen salaries: $91,000 Machinery setup costs: $35,000 Total manufacturing overhead: $216,000 The company uses activity-based costing to allocate its manufacturing overhead costs to products based on the following schedule: Overhead Cost Direct Labor Costs Direct Labor Hours Machine Hours Production Runs Units Produced Allocation Base Direct labor-hours Machine hours Number of production runs Factory Utilities Factory foremen salaries Setup costs During the current month, the following levels of activities were incurred: Car Seats $ 65,250 4,500 5,700 45 1,600 Strollers. $ 112,375 7,750 9,000 72 3,500 Baby Swings $ 38,425 2,650 3,900 50 1,070 What are the factory utilities costs allocated to Baby Swings during the current month? (Do not round intermediate calculations. Round your answer to the nearest dollar.) Estimated Activity Level 14,900 18,600 167 Total $ 216,050 14,900 18,600 167 6,170
What are the factory utilities costs allocated to Baby Swings during the current month? (Do not round
intermediate calculations. Round your answer to the nearest dollar.)
Multiple Choice
$46,812
$16,007
$216,000
$27,181
Transcribed Image Text:What are the factory utilities costs allocated to Baby Swings during the current month? (Do not round intermediate calculations. Round your answer to the nearest dollar.) Multiple Choice $46,812 $16,007 $216,000 $27,181
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