Osborne Ltd manufactures a wide range of leather suitcases. The following costs are expected to be incurred by the company during May:

Indirect labourcost$28,000

Direct labourtime10,000 hours

Indirect labourcost$28,000

Direct labourtime10,000 hours

Depreciation on equipment$20,000

Rent andRates$13,000

Direct labourcosts$98,000

Heating, lighting and power$ 4,000

Machinetime8,000 hours

Indirectmaterials$ 5,000

Consumables$ 2,000

Direct materialsused$50,000

Productionestimate1,000 suitcases

Refer to the table above. Total indirect costs are:

A.$72,000.

B.$59,000

C.$39,000.

D.$70,000.