Tire Town Has Two Product Lines of Tires Currently on the Manufacturing

Multiple Choice

Tire Town has two product lines of tires currently on the manufacturing floor.The product line managers provided the following information concerning the fixed overhead cost and production:
Total fixed costs to be allocated: $4,322,500
Standard Tire: 20,000 tires produced with $975,000 of direct labor cost
Deluxe Tire: 15,000 tires produced with $1,300,000 of direct labor cost
Which one of the following is a correct amount to be allocated to one of the two types of tires?

A) Standard tire at $92.63 per tire
B) Deluxe tire at $123.50 per tire
C) Standard tire at $1.90 per tire
D) Deluxe tire at $288.17 per tire