A company makes two products using the same type of materials and skilled workers. The following information is available:

Fixed costs relating to material handling amount to $100,000. The cost driver for these costs is the volume of material purchased.

General fixed costs, absorbed on the basis of labour hours, amount to $180,000.

Using activity-based costing, what is the total fixed overhead amount to be absorbed into each unit of product B (to the nearest whole $)?

A    $113
B    $120 
C    $40 
D    $105