Melissa Is the Controller for Barker Inc

Multiple Choice

Melissa is the controller for Barker Inc., a factory that creates unique dog chew toys. Until now, Barker has been using a single plant-wide rate of $10.75 per direct labor hour to allocate Manufacturing Overhead (MOH) costs. Melissa has been debating a switch to activity-based costing and has derived the following activity-based rates:
$18) 00 per machine hour
$11) 00 per direct labor hour
$6) 00 per inspection hour
A recent production run used 80 machine hours, 240 direct labor hours, and 10 inspection hours. How much MOH would be allocated using the newly derived activity-based rates?

A) $2,000.00
B) $2,700.00
C) $4,080.00
D) $4,140.00