ABC practice question

Hi John,

I hope you are well?

Please can you help me with this practice question where did they get the $20 from it didn’t say anything about this cost in the question or how did they get to this $20. Sorry for sounding daft

A company makes two products using the same type of materials and skilled workers.

The following information is available:

Product A Product B
Budgeted volume (units) 1,000 2,000
Material per unit (kg) 10 20
Labour per unit (hr) 5 20
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 $).

I got $12000 the answer is £120 answer below

Total material budget ((1,000 units x 10kg) + (2,000 units x 20kg)) = 50,000kg
Fixed costs related to material handling = $100,000
OAR = $2/kg of material
Product B = $2 x $20 = $40

Total labour budget ((1,000 units x 5hrs) + (2,000 units x 20hrs) = 45,000 hrs
General fixed costs = $180,000
OAR = $4/hr of labour
Product B = $4 x $20 = $80

Total fixed overhead cost per unit of Product B ($40 + $80) = $120