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If the setup costs are allocated using direct labor hours, how much of the total setup costs would be allocated to boat trailers? Trailers R

If the setup costs are allocated using direct labor hours, how much of the total setup costs would be allocated to boat trailers?image text in transcribed

Trailers R Us Company, 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: Budgeted units to be produced Budgeted number of setups Budgeted number of direct labor hours per unit Total budgeted setup costs for the year are $161,400 Travel trailersBoat trailers 2,900 530 60 2,350 320 30 If the setup costs are allocated using direct labor hours, how much of the total setup costs would be allocated to boat trailers? OA. $114,861 O B. S398349 OC. $226,795 O D. $161,400

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