Nixon Company Manufactures Two Models of Pens-A Standard and a Deluxe

Multiple Choice

Nixon Company manufactures two models of pens-a standard and a deluxe model. Three activities have been identified as cost drivers and the related overhead costs pooled together to arrive at the following information: $$\begin{array} { l l l l } \text { Product } & \begin{array} { l } \text { Number of } \\\text { Setups }\end{array} & \begin{array} { l } \text { Number of } \\\text { Components }\end{array} & \begin{array} { l } \text { Number of } \\\text { DLH }\end{array} \\\text { Standard } & 22 & 8 & 375 \\\text { Deluxe } & 28 & 12 & 225 \\\text { Costs per pool } & \$ 15,000 & \$ 36,000 & \$ 9,000\end{array}$$ is the total amount of overhead costs assigned to the standard model assuming traditional costing and applying overhead costs based on direct labor hours is used.

A) $33,375
B) $26,625
C) $37,500
D) $22,500