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 indirect labor allocated to Dept. 2 using activity-based costing. Direct Labor Hours Machine Hours Operating Dept. 1 980    9,200  Operating Dept. 2 2,100    6,000  Totals 3,080    15,200            Factory overhead costs         Rent and utilities     $21,700  Indirect labor      17,300  Depreciation - Equipment      14,000  Total factory overhead     $53,000  

A. $11,795.
B. $8,474.
C. $8,566.
D. $5,505.
E. $13,134.


Answer: A

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