In Determining the Cost of Inventory,Department A's Indirect Costs Are

Multiple Choice

In determining the cost of inventory,Department A's indirect costs are to be allocated using machine hours as the cost driver.If Department A's indirect costs total $300 000 and it expects to use 25 500 machine hours for the period the indirect cost rate for the department is:

A) $11.765 per machine hour
B) $0.085 per machine hour
C) there is insufficient information to determine the indirect cost rate for the department
D) none of the options is correct