San Diego State University Operations And Supply Chain Management Assignment Help - Current

Question - Starbright manufactures children car seats, strollers, and baby swings. Starbright manufacturing costs
are budgeted as follows:
Factory utilities $85,000
Factory foremen salaries $87,000
Machinery setup costs $31,000
Total manufacturing overhead $203,000

The company uses activity-based costing to allocate its manufacturing overhead costs to products
based on the following schedule:

Overhead Cost Allocation Base
Factory Utilities Direct labor hours
Factory foremen salaries Machine hours
Setup costs Number of production runs

During the current month, the following levels of activities were incurred:

Car Seats Strollers Baby Swings Total
Direct Labor Costs $ 46,410 $ 79,275 $ 27,405 $ 153,090
Direct Labor Hours 4,420 7, ...Read More 550 2,610 14,580
Machine Hours 5,500 8,200 3,500 17,200
Production Runs 40 64 42 146
Units Produced 1,200 3,100 990 5,290 ...Read Less

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