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

Question

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

Quizplus · Accepted Answer

The Answer of 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

Louis Corporation,which Uses an Activity-Based Costing System,produces Travel Trailers and Boat