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If the setup costs are allocated using direct labor hours

Carrol 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 ,050 2700

Budgeted number of setups 310 550

Budgeted number of direct labor hours per unit 70

Total budgeted setup costs for the year are $ 157,400. If the setup costs are allocated using direct labor hours, how much of the total setup costs would be allocated to boat trailers?

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