Tandem Company Manufactures Two Products (D and F) Using Functional-Based Costing, What Is the Amount of Overhead Cost

Multiple Choice

Tandem Company manufactures two products (D and F) . The overhead costs ($84,000) have been divided into three cost pools that use the following activity drivers: $\begin{array}{cccc}\text { Product } & \text { Number of Setups} & \text { Machine Hours} & \text { Packing Orders }\\\hline\mathrm{D} & 10 & 500 & 75 \\\text { F } & 10 & 2,000 & 175 \\\text { Cost perpool } & \$ 11,000 & \$ 60,000 & \$ 18,750\end{array}$ Using functional-based costing, what is the amount of overhead cost to be assigned to Product D using machine hours as the allocation base?

A) $12,000
B) $60,000
C) $48,000
D) $16,800