The Fancy Flier Airplane Corporation has a central materials laboratory. The laboratory has only two users, the Large Plane Department and the Small Plane Department. The following data apply to the coming budget year. Budgeted amounts are used to calculate the allocation rates. Actual usage for the year by the Large Plane Department was

6,000

technician hours and by the Small Plane Department was

6,500

technician hours. If a single-rate cost allocation method is used, what is the allocation rate per hour used? Round to the nearest cent.

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Part 1

A.

$117.50

B.

$128.00

C.

$146.67

D.

$80.00

E.

$100.00

Budget Data