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In establishing a facility cost pool, the following budgeted costs for the year were included;...

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Accounting

In establishing a facility cost pool, the following budgeted costs for the year were included; Utilities to Heat the Building $250,000 Janitorial Services and Supplies $ 50,000 Building Maintenance $100,000 The company decides to calculate the predetermined overhead rate using budgeted Direct Labor Hours of 20,000 hours for the year. In January, Product A consumes 1,500 of Direct Labor Hours. The company will allocate $____________ of facility overhead cost to Product A:

A. $30,000

B. $300,000

C. $1,500

D. $3,000

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