Dragon Fire Hot Sauce Makes Two Types of Hot Sauces-Meek

Multiple Choice

Dragon Fire Hot Sauce makes two types of hot sauces-meek and mild.Budgeted information for the two flavors appears below: $\begin{array}{lrr}&\text { Meek }&\text { Mild }\\\text { Sales } & \$ 600,000 & \$ 400,000 \\\text { Direct materials } & \$ 100,000 & \$ 120,000 \\\text { Direct labor cost } & \$ 108,000 & \$ 180,000 \\\text { Labor hourly cost } & \$ 12,00 & \$ 12,00\end{array}$ The company estimates it will incur $345,600 in overhead costs for the period.Dragon Fire allocates overhead cost to products based on the labor cost incurred.How much overhead is assigned to Mild?

A) $216,000
B) $28,800
C) $56,250
D) None of these answer choices are correct.