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 activitybased 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
Budgeted number of setups
Budgeted number of direct labour hours per unit
Total budgeted setup costs for the year are $
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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