Sheddon Industries Produces Two Products The Company's Overhead Costs of $58,000 Are Allocated Based on as Follows

question 140

Multiple Choice

Sheddon Industries produces two products. The products' identified costs are as follows: $$\begin{array} { l c c } & \text { Product A } & \text { Product B } \\\text { Direct materials } & \$ 24,000 & \$ 19,000 \\\text { Direct labor } & 12,000 & 20,000\end{array}$$ The company's overhead costs of $58,000 are allocated based on labor cost. Assume 8,000 units of product A and 9,000 units of Product B are produced. What amount of production costs would be assigned to Product A? (Do not round intermediate calculations.)

• A) $47,000
• B) $105,000
• C) $53,400
• D) None of the answers are correct.

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