The Speedjet Aircraft 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 costs of operating the materials laboratory for 150,000 to 250,000 technician hours per year:
Fixed costs per year	$7,200,000
Variable costs	$71		per technician hour
Budgeted longrun usage in hours per year:
Large Plane Department	90,000		technician hours
Small Plane Department	70,000		technician hours

Budgeted amounts are used to calculate the allocation rates.

Actual usage for the year by the Large Plane Department was 80,000 technician hours and by the Small Plane Department was 120,000 technician hours. If a

dualrate

costallocation

method is used, what amount of materials laboratory costs will be allocated to the Small Plane Department? Assume budgeted usage is used to allocate fixed materials laboratory costs and actual usage is used to allocate variable materials laboratory costs.

A.

$10,370,000

B.

$11,670,000

C.

$13,920,000

D.

$8,120,000