A Company Incurs $3,600,000 of Overhead Each Year in Three

question 97

Multiple Choice

A company incurs $3,600,000 of overhead each year in three departments: Processing, Packaging, and Testing. The company performs 800 processing transactions, 200,000 packaging transactions, and 2,000 tests per year in producing 400,000 drums of Oil and 600,000 drums of Sludge. The following data are available: $\begin{array}{crr}\text { Department}&\text {Expected use of Driver }&\text {Cost }\\\hline \text { Processing } & 800 & \$ 1,500,000 \\\text { Packaging } & 200,000 & 1,500,000 \\\text { Testing } & 2,000 & 600,000\end{array}$

$\text { Production information for the two products is as follows: }$
$\begin{array}{lcc}&\text { Oil }&\text { Sludge }\\\text { Department }&\text { Expected Use of Driver }&\text { Expected Use of Driver }\\\text { Processing } & 300 & 500 \\\text { Packaging } & 120,000 & 80,000 \\\text { Testing } & 1,600 & 400\end{array}$ The amount of overhead assigned to Sludge using ABC is

• A)$1,800,000.
• B)$1,657,500.
• C)$1,942,500.
• D)$1,380,000.

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Definitions:

Doublet

A pattern in NMR spectroscopy indicating two adjacent protons that are not equivalent, leading to two closely spaced signals.

IR

Infrared spectroscopy, a technique used for identifying organic compounds through their unique absorption of infrared light.

NMR Data

Information obtained from nuclear magnetic resonance spectroscopy that provides details about the structure of molecules based on their magnetic properties.

Singlet

A term used in spectroscopy to describe a peak or signal that consists of a single line, often related to the absence of splitting in NMR or other spectra.