K Company estimates that overhead costs for the next year will be $2,900,000 for indirect labor and $800,000 for factory utilities.The company uses direct labor hours as its overhead allocation base.If 80,000 direct labor hours are planned for this next year,how much overhead would be assigned to a product requiring 4 direct labor hours?

A) $46.25
B) $36.25
C) $185.00
D) $145.00
E) None of the choices

Indirect Labor

Labor costs associated with employees who assist in the production process but do not work directly on the product, like maintenance staff or supervisors.

Factory Utilities

Costs associated with the utilities consumed in the production process, such as electricity, gas, and water.

Overhead Allocation Base

A measure or criteria used to distribute indirect costs to various products, services, or departments based on their usage or consumption.