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

question 126

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 number of setups, how much of the total setup costs would be allocated to boat trailers?

• A) $66,500
• B) $73,500
• C) $140,000
• D) $294,737