1 . The following information is available for the Downtown Furniture Company which produces two types of tables Oak Cherry Total Sales volume ( units ) 500 209 800 Revenue $80 000 $ 78000 $158000 Variable Costs Direct materials $5 000 $7 000 $ 12000 Direct labor 17.000 $22 000 $39 000 Contribution Margin $58000 $49 000 $107 000 Fixed Costs Manufacturing $25, 500 Administrative 31 000 Profit Before Tax $50, 500 Management feels that the fixed manufacturing costs should be allocated based on direct labor costs and fixed administrative costs should be allocated based on units sold . The amount of fixed administrative costs which should be allocated to the Cherry tables is A . $15 , 500 B . $18. 600 C . $31 000 D. $11 .625