Celebration Cards Inc. is a greeting card company that uses the multiple production department rate method to allocate factory overhead. Celebration Cards prints cards for two occasions--Valentine's Day and birthdays. The cards are manufactured through two departments--Printing and Cutting. The Printing Department has a factory overhead budget of $120,000 and 5,000 machine hours. The Cutting Department has a factory overhead budget of $80,000 and 8,000 direct labor hours. If a case of Valentine's Day cards requires 0.5 machine hours in the Printing Department and 0.25 direct labor hours in the Cutting Department, how much factory overhead should be allocated to the case?
a. $11.55
b. $12.00
c. $15.40
d. $14.50
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