Which factor explains the difference between overhead and joint costs?

a- level of the costs

b- inventory valuation

c- causality between costs and products

d- influence on the profit

/test/0632 Case. KALLY Company (questions 17 - 18) KALLY Company manufactures three products: A B and C. Budgeted Information for next year is given below: A B C Total Sales revenue $ 169 000 $ 78 000 $ 353 000 $ 600 000 Direct materials $ 42 000 $ 19 200 $ 150 500 $ 211 700 Direct labour $ 28 000 $ 28 800 $ 64 500 $ 121 300 Fixed production overheads ? ? ? $ 240 000 Fixed production overheads are currently absorbed based on 40% of sales revenue. KALLY is considering changing to an activity-based costing system. The main activities and their associated cost drivers and overhead cost have been Identified as follows: Activity Cost driver Fixed production overhead Scheduling number of orders $ 85 000 Handling kg direct materials used $ 23 000 Assembly assembly time $ 128 300 Packaging number of units produced $ 3 700 Total $ 240 000 Further details have also been ascertained as follows: A B C Budgeted production for next year (units) 1 000 200 2 500 Average number of units per order 10 125 50 Kg of direct materials used per 10 000 units 15 000 100 000 6 000 Assembly time per unit (minutes) 2 25 10 Calculate the fixed production overhead for Product B using the current cost allocating system. [Round your answer to the nearest integer.]