Starbright manufactures child 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 costs Allocation Base Direct labor-hours Machine hours Number of production runs During the current month, the following levels of activities were incurred: Direct Labor Costs Direct Labor Hours. Machine Hours Production Runs Units Produced Car Seats $ 55,425 Baby Swings $ 31,258 2,604 3,250 Estimated Activity Level 18 750 14,258 21,000 83 Strollers. $ 84,423 4,619 7,500 7,035 10,250 25 1,500 40 2,500 What are the setup costs allocated to Strollers during the current month? (Do not round intermediate calculations. Round your answer to the nearest dollar.) Total $ 171,106 14,258 21,000 83 4,750
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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