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Louis Corporation, which uses an activity-based costing system, produces travel trailers and boat trailers. The...

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Accounting

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 trailers
Boat trailers
Budgeted units to be produced
2,000
3,000
Budgeted number of setups
380
420
Budgeted number of direct labour hours per unit
20
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?

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