View Policies Current Attempt in Progress The managers at Elliot Manufacturing are discussing ways to allocate the cost of support departments such as Quality Control and Maintenance to the operating departments. To aid them in this discussion, the controller has provided the following information: Support Operating Quality Control Maintenance Machining Assembly Total Budgeted overhead costs before allocation $350,000 $200,000 $400,000 $300,000 $1,250,000 Budgeted machine hours 50,000 50,000 Budgeted direct labour hours 25,000 25,000 Budgeted hours of service: Quality control Maintenance 7,000 21,000 7,000 35,000 10,000 18,000 12.000 40,000 Using the direct method, the total amount of overhead (production and support) allocated to the Machining department for each machine hour at Elliot Manufacturing would be: $2.40 O $5.25 $8.00 $15,65 Save for Later Attempts: 0 of 1 used Submit Answer