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Trailers R Us Company, which uses an activity-based costing system, produces travel trailers and boat...

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Question

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.

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