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question 9

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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:
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
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?


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