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Assume a business has $100,000 in overhead costs and 20,000 total machine hours. Also assume that the business uses machine hours as the allocation base.

Assume a business has $100,000 in overhead costs and 20,000 total machine hours. Also assume that the business uses machine hours as the allocation base. If one of the departments used 10,000 machine hours, what is the total amount of overhead allocated to that department?

Answer choices:

A) $100,000

B) $200,000

C) $10,000

D) $50,000

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