The Following Information Pertains to Amon Schrock Corporation: Amon

Multiple Choice

The following information pertains to Amon Schrock Corporation: Amon Schrock Corporation does not divide costs into fixed and variable components. Personnel costs are allocated based on the number of employees, and maintenance costs are allocated based on machine hours.
Predetermined overhead rates for fabrication and assembly are based on direct labor hours.
If the direct method is used to allocate support department costs, the predetermined overhead rate for the Fabrication Department (rounded to two decimal places) is

A) $28.80.
B) $24.78.
C) $7.28.
D) $5.40.