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

question 133

Multiple Choice

Sheddon Industries produces two products.The products' identified costs are as follows: $\begin{array}{|l|c|l|}\hline & \text { Product A } & \text { Product B } \\\hline \text { Direct matenals } & \$ 20,000 & \$ 15,000 \\\hline \text { Direct labor } & 12,000 & 24,000 \\\hline\end{array}$ 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 your intermediate calculations. )

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

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Definitions:

Opiate Receptor Sites

Specific locations on nerve cells in the brain and body where opiates interact to produce their effects.

Experience of Pain

The individual and subjective perception of pain, which can vary greatly in intensity, quality, and emotional impact.

Morphine

A potent opioid pain medication derived from opium, used to treat severe pain.