4. Kalamazoo, Inc makes 2 types of horse trailer, The Quatro and the Deuce. Kalamazoo has 2 departments: Fabrication, with an Overhead allocation of $105,000 and Assembly which is allocated $35,000 of Overhead. Both Departments are budgeted for 100 units of each product.

Fabrication Assembly

Quatro 10 dlh 4 dlh

Deuce 5 dlh 3 dlh

Fabrication Department overhead rate = $70 per dlh

Assembly Department overhead rate = $50 per dlh

Determine the factory overhead allocated per unit for Quatro and Deuce, respectively. (show work for full credit)

A) $750 and $500

B) $500 and $900

C) $900 and $500

D) $855 and $455