Geneva, Inc., makes two products, X and Y, that require allocation of indirect manufacturing costs. The following data were compiled by the accountants before making any allocations:

		Product X		Product Y
Quantity produced		10,000		20,000
Direct manufacturing labor hours		40,000		10,000
Number of purchase orders		500		2,000

The total cost of purchasing and receiving parts used in manufacturing is $60,000. The company uses a job-costing system with a single indirect cost rate. Under this system, allocated costs were $48,000 and $12,000 for X and Y, respectively. If an activity-based system is used, what would be the allocated costs for each product?

Product X

Product Y

a.

$30,000

$30,000

b.

$45,000

$15,000

c.

$12,000

$48,000

d.

$48,000

$12,000