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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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