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Alpha company makes 200 units of product A and 500 units of product B. Product A uses $5 of direct materials per unit and $30 of direct labor per...

Alpha company makes 200 units of product A and 500 units of product B. Product A uses $5 of direct materials per unit and $30 of direct labor per unit. Product B uses $3 of direct materials per unit and $20 of direct labor per unit. Total fixed costs are $4,000, allocated based on direct labor dollars. Compute allocated fixed cost:


A. A=$1,600, B=$2,400

B. A=$2.400, B=$1,600

C. A=$1,500, B=$2,500

D. A=$3,500, B=$5,750

E. not enough information - because fixed costs cannot be traced to products, they cannot be allocated

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