In determining the cost of inventory,department M's indirect costs are allocated using machine hours as the cost driver.If department M's indirect costs total $850 000 and it expects to use 52 000 machine hours for the period,the indirect cost rate for the department is:
A) there is insufficient information to determine the indirect cost rate for the department.
B) $0.061 per machine hour.
C) $16.346 per machine hour.
D) none of the options are correct.
Correct Answer:
Verified
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