Kevin grows Corn and Wheat in his farm. He needs to allocate his fixed manufacturing overhead costs of $200,000 between these two products. Here is the information that he uses to allocate the overhead costs:

	Corn	Wheat
Acres planted	400	400
Yield (Bushels per acre)	150	50

Kevin allocates 20% of the fixed manufacturing overhead using number of acres as cost allocation driver and the rest by using number of bushels produced. The amount of overhead allocated to Corn and Wheat equal:

	Overhead allocated to Corn	Overhead allocated to Wheat
A	$100,000	$100,000
B	$140,000	$60,000
C	$150,000	$50,000
D	$110,000	$90,000
E	$50,000	$150,000

	a.	A
	b.	B
	c.	C
	d.	D
	e.	E