| 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 | 7,550 | 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 |
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