Use the Following Information for the Next 5 Questions

question 11

Multiple Choice

Use the following information for the next 5 questions.
The managers at Ithaca Manufacturing are discussing ways to allocate the cost of support departments such as Quality Control and Maintenance to the operating departments. To aid them in this discussion, the controller has provided the following information.
-(CMA) Using the direct method, the total amount of overhead (production and support) allocated to the machining department for each machine hour at Ithica Manufacturing would be

• A) $2.40
• B) $5.25
• C) $8.00
• D) $15.65