A manufacturing plant produces two versions of a product: standard model; deluxe model. Each unit requires the use of the same machine. Manufacturing is done in production runs and each run has a set-up which involves programming the machinery. The program must be changed for each production run. For the month, the plant recorded the following:

Standard Deluxe

2,000 1,000 Units produced

40,000 60,000 Machine hours

8 24 Number of production runs

Consider the cost of programming machinery ($120,000). How much of this cost should be assigned to standard units?

a. 30,000

b. 40,000

c. 48,000

d. 60,000

e. 72,000

f. 90,000