Sheddon Industries Produces Two Products The Company's Overhead Costs of $108,000 Are Allocated Based on as Follows

question 29

Multiple Choice

Sheddon Industries produces two products. The products' identified costs are as follows: $\begin{array}{l}& \text { Product A } & \text { Product B } \\\text { Direct materials }&\$ 20,000&\$15,000\\\text { Direct labor }&12,000&24,000\end{array}$ The company's overhead costs of $108,000 are allocated based on labor cost. Assume 4,000 units of product A and 5,000 units of Product B are produced. What amount of production costs would be assigned to Product A? (Do not round intermediate calculations.)

• A) $36,000
• B) $111,000
• C) $68,000
• D) None of the answers are correct.

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