The managers of Rochester Manufacturing are discussing ways to allocate the cost of service departments such as Quality Control and Maintenance to the production departments. To aid them in this discussion, the controller has provided the following information:

                                          Quality Control Maintenance Machining  Assembly   Total

Budgeted overhead costs before allocation   $350,000    $200,000   $400,000  $300,000  $1,250,000

Budgeted machine hours                                                 50,000               50,000

Budgeted direct labor hours                                                        25,000     25,000

Budgeted hours of service:               

Quality control                                               7,000       21,000   7,000      35,000

Maintenance                                  10,000                     18,000  12,000     40,000

If Rochester Manufacturing decides not to allocate service costs to the production departments, the overhead allocated to each direct labor hour in the Assembly Department would be

A. $12.00.

B. $3.20.

C. $16.00.

D. $3.50.