Carrol Company,which Uses an Activity-Based Costing System,produces Travel Trailers and Boat

Multiple Choice

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

A) $158,400
B) $104,400
C) $240,331
D) $306,240