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How much of the total setup costs would be allocated

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Question - Louis Corporation, 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 2,000 3,000

Budgeted number of setups 380 420

Budgeted number of direct labour hours per unit 20 10

Total budgeted setup costs for the year are $140,000.

If the setup costs are allocated using direct labour hours, how much of the total setup costs would be allocated to boat trailers?

Reference no: EM132816505

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