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How much of the total setup costs would be allocated to boat

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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: EM132838769

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