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Author Question: Louis Corporation, which uses an activity-based costing system, produces travel trailers and boat ... (Read 479 times)

lindiwe

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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:

Travel trailersBoat trailers
Budgeted units to be produced2,000 3,000
Budgeted number of setups380 420
Budgeted number of direct labour hours per unit20 10

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?
◦ $60,000
◦ $105,000
◦ $326,667
◦ $140,000


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Marked as best answer by lindiwe on Jan 4, 2020

bigsis44

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