The Managers at Elliot Manufacturing Are Discussing Ways to Allocate

Multiple Choice

The managers at Elliot 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: Using the direct method, the total amount of overhead (production and support) allocated to the Machining department for each machine hour at Elliot Manufacturing would be:

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