Sheddon Industries Produces Two Products The Company's Overhead Costs of $108,000 Are Allocated Based on Follows

Multiple Choice

Sheddon Industries produces two products.The products' identified costs are as follows: $\begin{array}{lrr}&\text { Product A }&\text { Product B }\\ \text { Direct materials} &\$20,000&\$15,000\\ \text { Direct labor} &12,000&24,000\\\end{array}$
The company's overhead costs of $108,000 are allocated based on labor cost.Assume 4,000 units of product A and 5,000 units of Product B are produced.What amount of production costs would be assigned to Product A? (Do not round intermediate calculations.)

A) $36,000
B) $111,000
C) $68,000
D) None of the answers are correct.