The managers of Rochester Manufacturing are discussing ways to allocate the cost of service departments, such as Quality Control and Maintenance, to the production departments. To aid them in this discussion, the controller has provided the following information:

	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 labor hours	--	--	--	25,000	25,000
Budgeted hours of service:
Quality Control	--	7,000	21,000	7,000	35,000
Maintenance	10,000	--	18,000	12,000	40,000

Question

Using the direct method, the total amount of overhead allocated to each machine hour at Rochester would be

A.$2.40

B.$5.25

C.$8.00

D.$15.65