Use the Information Below to Answer the Following Question(s)

Multiple Choice

Use the information below to answer the following question(s) :
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