In Determining the Cost of Inventory,department M's Indirect Costs Are

question 54

Multiple Choice

In determining the cost of inventory,department M's indirect costs are allocated using machine hours as the cost driver.If department M's indirect costs total $850 000 and it expects to use 52 000 machine hours for the period,the indirect cost rate for the department is:

• A) there is insufficient information to determine the indirect cost rate for the department.
• B) $0.061 per machine hour.
• C) $16.346 per machine hour.
• D) none of the options are correct.