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In its first year of operations a company produced and sold 70,000 units of Product A at a selling price of $20 per unit and 17,500 units of Product B at a selling price of $40 per unit. Additional information relating to the company's only two products is shown below: Product A $ 436,300 $ 200,000 Product B $ 251,700 $ 104,000 Direct materials Direct labor Manufacturing overhead Cost of goods sold Total $ 688,000 304,000 608,000 $ 1,600,000 The company created an activity-based costing system that allocated its manufacturing overhead costs to four activities as follows: Manufacturing Overhead $ 213,500 157,500 120,000 117,000 $ 608,000 Product A 80,900 75 Activity Product B 71,600 300 Activity Cost Pool (and Activity Measure) Machining (machine-hours) Setups (setup hours) Product design (number of products) Other (organization-sustaining costs) Total manufacturing overhead cost Total 152,500 375 2. NA 1 1 NA NA The company's ABC implem team also concluded that $50,000 and $100,000 of the company's advertising expenses could be directly traced to Product A and Product B, respectively. The remainder of its selling and administrative expenses ($400,000) was organization-sustaining in nature. The company's activity-based costing system would allocate how much manufacturing overhead to Product A? Multiple Choice $199,960 $202,960 $199,960 $202,960 $209,760 O O $204,760

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