A company has a processing department with 10 stations. Because of the nature and use of three of these stations, each is considered a separate cost center for IDC allocation. The remaining seven are grouped as one cost center, CC190. Operating hours are used as the allocation basis for all stations. A total of $250,000 is allocated to the department for next year. Use the data collected this year to determine the IDC rate for each center.
 FIGURE 1.png)
Rate for CC100 = 25,000/800 = $31.25 per hour
Rate for CC110 = 50,000/200 = $250 per hour
Rate for CC120 = 75,000/1200 = $62.50 per hour
Rate for CC190 = 100,000/1600 = $62.50 per hour
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