#23

Trailers R Us Company, which uses an

activityminusbased

costing system, produces travel trailers and boat trailers. The company allocates batch setup costs to the two products using the following basic data:

	Travel trailers	Boat trailers
Budgeted units to be produced	2,550	2,900
Budgeted number of setups	340	600
Budgeted number of direct labor hours per unit	40	80

Total budgeted setup costs for the year are

$ $158,400.

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