Use the Information Below to Answer the Following Question(s)

Multiple Choice

Use the information below to answer the following question(s) .
Data Source Media manufactures cassettes and CDs. Management is attempting to set the budget for the coming year. Two divisions (Cassette and CD) of the company utilize one plant location. The following data have been prepared for review.

-What is the fixed cost per year and the variable cost per hour, respectively, for the Cassette Department using the dual-rate method, assuming that the allocation bases are capacity for fixed costs and actual usage for variable costs?

A) $720,000 and $480
B) $720,000 and $600
C) $765,958 rounded and $480
D) $765,958 rounded and $600
E) $900,000 and $600