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 600 and 200 respectively. Assume a traditional costing system applies the $80,000 of overhead costs based on direct labor hours. the total amount of overhead costs assigned to the Big model is:

a.

$40,000.

b.

$15,000.

c.

$60,000.

d.

$65,000.