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Question - 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 ?2,050 ?3,200
Budgeted number of setups 320 520
Budgeted number of direct labor hours per unit 40 80
Total budgeted setup costs for the year are? $155,400.
If the setup costs are allocated using number of? setups, how much of the total setup costs would be allocated to boat? trailers?
A. ?$379,250
B. ?$155,400
C. ?$96,200
D. ?$59,200
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