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Allocating Overhead By Number of Setups

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GoFish Inc. has an overhead rate for machine setups of $200 per machine setup, for a total of $56,000 of overhead. The company produces two products; Product Salamander and Product Gold, which require 160 and 120 setups each, respectively. The overhead assigned to each product is:
Salamander Gold
A) $28,000 $28,000
B) $24,000 $32,000
C) $30,000 $26,000
D) $32,000 $24,000

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This solution helps with a cost accounting problem.

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