Trailers R Us Company, Which Uses an Activity-Based Costing System

Multiple Choice

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: Total budgeted setup costs for the year are $161,400.
If the setup costs are allocated using direct labor hours, how much of the total setup costs would be allocated to boat trailers?

A) $161,400
B) $114,861
C) $226,795
D) $398,349