Wall Nuts, Inc. produces paneling which requires two processes, A and B, to complete. Oak is the best selling of all the many types of paneling produced. Information related to the 40,000 units of oak paneling produced annually is shown below.

Use the data for Wall Nuts, Inc. to compute the dollar amount of overhead applied to each unit of oak paneling, assuming the company uses departmental overhead rates based on machine hours in Department A and machine hours in Department B. A) $8.70. B) $1.40. C) $14.40. D) $26.25. E) $41.00.