Skill Building Exercise 3-Period Cost Application Analysis- Direct Method The managers of Sample Company are discussing ways to allocate the cost of service departments, such as quality control and maintenance, to the production departments. To aid them in this discussion, the controller has provided the following information: Quality Control Maintenance Machining AssemblyTotal $1,250,000 50,000 25,00025,000 $200,000S400,000 50,000 $300,000 Budgeted O/H before Allocation$350,000 Budgeted machine hours Budgeted direct labour hours Budgeted hours of service Quality control Maintenance 7,000 21,000 7,00035,000 18,00012,00040,000 10,000 Using the direct allocation method, the total amount of overhead allocated to each machine hour a) S9.35 b) S5.25 c) $2.40 d) $8.00 e) $15.65 would be: 13