Louis Corporation,which Uses an Activity-Based Costing System,produces Travel Trailers and Boat

Multiple Choice

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:

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?

A) $60,000
B) $105,000
C) $140,000
D) $326,667