In determining the cost of inventory,Department A's indirect costs are to be allocated using machine hours as the cost driver.If Department A's indirect costs total $300 000 and it expects to use 25 500 machine hours for the period the indirect cost rate for the department is:
A) $11.765 per machine hour
B) $0.085 per machine hour
C) there is insufficient information to determine the indirect cost rate for the department
D) none of the options is correct
Correct Answer:
Verified
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