Theodore Company’s overhead rate for machine setups is $115 per setup. A total of 105 setups are estimated for the period. At year-end, it was determined that Products A and B have 60 and 45 setups, respectively. How much is the overhead cost assigned to each product?a. Product A $10,062.50, Product B $2,012.50 b. Not enough information to determine the answer c. Product A $6,037.50, Product B $6,037.50 d. Product A $6,900, Product B $5,175

To calculate the overhead cost assigned to each product, we will multiply the number of setups each product has by the overhead rate per setup. Given that the overhead rate is $115 per setup, we use the following calculations:

For Product A: Number of setups for Product A: 60 setups Overhead rate per setup: $115/setup Overhead cost for Product A = Number of setups for Product A * Overhead rate per setup Overhead cost for Product A = 60 setups * $115/setup Overhead cost for Product A = $6,900

For Product B: Number of setups for Product B: 45 setups Overhead rate per setup: $115/setup Overhead cost for Product B = Number of setups for Product B * Overhead rate per setup Overhead cost for Product B = 45 setups * $115/setup Overhead cost for Product B = $5,175

Therefore, the overhead cost assigned to Product A is $6,900 and to Product B is $5,175. The correct answer is d. Product A $6,900, Product B $5,175.