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A company which manufactures 3 types of automobiles (standard, mid-class, and luxury) incurred the following costs for March: $18,000 for production materials used on all

A company which manufactures 3 types of automobiles (standard, mid-class, and luxury) incurred the following costs for March: $18,000 for production materials used on all cars such as tires and glass. $14,000 for leather used exclusively on the luxury line of cars. $2,000 for tire rims to be used exclusively on the mid-class line of cars. $3,000 for glue to be used in the manufacturing process for all cars. $14,000 for insurance (half for administrative activities, half for production activities). $9,000 for production employee's wages who work on all three lines of cars. $8,000 for rent (75% for the production facility, 25% for the administrative offices). Direct costs to the mid-class line of cars total:

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$23,000.

$32,000.

$15,000.

$2,000.

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