Longview Manufacturing Company Manufactures Two Products (I and II) If the Number of Labor Hours Is Used to Assign

Multiple Choice

Longview Manufacturing Company manufactures two products (I and II) . The overhead costs ($58,000) have been divided into three cost pools that use the following activity drivers: $\begin{array}{lccc} &&\text { Number of Labor }\\\text { Product } & \text {Number of Orders } & \text { Transactions } &\text { Labor Hours }\\\hline I& 15 & 50 & 500 \\II & 10&150&2,000 \\\text { Cost per pool } & \$ 12,500 & \$ 8,000 & \$ 40,000\end{array}$ If the number of labor hours is used to assign labor costs from the cost pool, determine the amount of overhead cost to be assigned to Product I.

A) $58,000
B) $ 8,000
C) $ 9,600
D) $32,000