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 are the fixed cost per year and the variable cost per hour for the CD Department if the dual-rate method is used? Assume that the allocation bases are budgeted usage for fixed costs and actual usage for variable costs.

A) $100,270 and $600
B) $126,000 and $600
C) $134,043 rounded and $89.36
D) $134,043 rounded and $600
E) $900,000 and $600