Use the Following Information for the Next 2 Questions

Multiple Choice

Use the following information for the next 2 questions.
(CMA) Flagler Corporation is preparing its annual profit plan. As part of its analysis of the profitability of individual products, the controller estimates the amount of overhead that should be assigned to the individual product lines from the information given as follows:
-Under a costing system that assigns overhead on the basis of direct labor hours, the materials handling costs allocated to one unit of wall mirrors would be

A) $1,000
B) $500
C) $2,000
D) $5,000