Andover, Inc

Multiple Choice

Andover, Inc., has two producing departments. Each producing department is held responsible for a share of the costs of a support department. Actual and budgeted data are as follows:
Normal support department usage is 8,000 hours each for Department X and Department Y. Assuming the direct method is used and the purpose is performance evaluation, support department costs allocated to Department X are

A) $45,000.
B) $36,400.
C) $40,000.
D) $36,000.