The IT department's cost data is as follows: Estimated Costs Fixed Costs $ 500,000 Variable,...

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Accounting

The IT department's cost data is as follows:

Estimated Costs

Fixed Costs $ 500,000

Variable, ($300 per hour) $600,000

Total $1,100,000

IT Departmental Usage:

Hours Department A Department B

Budgeted 1,100 900

Actual 1,300 1,200

The fixed costs are allocated based on relative budgeted hours with variable costs applied based on actual hours. Department A will be allocated total overhead of:

A. $715,000

B. $390,000

C. $605,000

D. $665,000

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