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

question 20

Multiple Choice

Sheddon Industries produces two products. The products' identified costs are as follows: $$\begin{array} { | l | c | l | } \hline & \text { Product } \mathrm { A } & \text { Product B } \\\hline \text { Direct materials } & \$ 20,000 & \$ 15,000 \\\hline \text { Direct labor } & 12,000 & 24,000 \\\hline\end{array}$$ 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 these answers is correct.