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Carrol 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:
Total budgeted setup costs for the year are $158,400.
Problem 1: If the setup costs are allocated using number of setups, how much of the total setup costs would be allocated to boat trailers?
Group of answer choices
Option 1: $419,294
Option 2: $59,840
Option 3: $98,560
Option 4: $158,400
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