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:

-Number of setups and number of components are identified as activity-cost drivers for overhead. Assuming an activity-based costing system is used, 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