The following is taken from Clausen Company's internal records of its factory with two operating departments. The cost driver for indirect labor is direct labor hours, and the cost driver for the remaining items is number of hours of machine use. Compute the total amount of rent and utilities allocated to Dept. 2 using activity-based costing.

	Direct Labor Hours					Machine Hours
Operating Dept. 1			966				9,000
Operating Dept. 2			2,254				6,000
Totals			3,220				15,000
Factory overhead costs
Rent and utilities						$	22,400
Indirect labor							18,000
Depreciation Equipment							14,700
Total factory overhead						$	55,100

Multiple Choice

$6,000.

$13,440.

$8,960.

$56,000.

$14,933.