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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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