Answer the Following Questions Using the Information Below

Multiple Choice

Answer the following questions using the information below:
Racer X Corporation manufactures two models of motorized go-carts, 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 cost assigned to the deluxe model?

A) $25,500
B) $25,000
C) $24,000
D) $12,500