Answer the Following Questions Using the Information Below

Multiple Choice

Answer the following questions using the information below:
Fey Corporation manufactures two models of office chairs, a standard and a deluxe model. The following activity and cost information has been compiled:

-Assume a traditional costing system applies the $120,000 of overhead costs based on direct labor hours. What is the total amount of overhead costs assigned to the standard model?

A) $49,600
B) $70,400
C) $75,000
D) $45,000