Original company manufactures two models of juice, Big model and Small model. The Following activity and cost information has been compiled: Number of setups 3 setups for Big and 7 setups for Small, number of components 30 and 50 respectively and number of direct labor hours 650 and 150 respectively. Assume an activity-based costing system is used and that the number of setups identified as the activity-cost driver for $20,000 overhead, and the number of components are identified as the activity-cost driver for $60,000 overhead. the total amount of overhead costs assigned to the Small model is:

a.

$60,000.

b.

$28,500.

c.

$65,000.

d.

$51,500.

Kia Corporation has two departments, A and B. Central costs could be allocated to the two departments in various ways. Square footage of department A and B 6,000 and 18,000 square feet respectively, Number of employees of department A and B 1,120 and 480 respectively, and sales of department A and B $1,000,000 and $2,000,000 respectively. If advertising expense of $300,000 is allocated on the basis of sales, the amount allocated to Department B would be:

a.

$200,000

b.

$75,000

c.

$250,000

d.

$50,000