The Fast & Furious Company Produces Two Products: Toy Planes

question 7

Multiple Choice

The Fast & Furious Company produces two products: toy planes and toy race cars. They use departmental overhead rates for the two production departments: molding and finishing. Molding uses machine hours to assign overhead and Finishing uses direct labor hours. 50,000 planes and 250,000 race cars are produced. Please find the following data: $$\begin{array} { | l | c | c | c | } \hline & \text { Molding } & \text { Finishing } & \text { T otal } \\\hline \text { Estimated Overhead } & \$ 250,000 & \$ 100,000 & \$ 350,000 \\\hline \text { Actual Overhead } & \$ 240,000 & \$ 120,000 & \$ 360,000 \\\hline & & & \\\hline \text { Expected Direct Labor Hours } & & & \\\hline \text { planes } & 5,000 & 5,000 & 10,000 \\\hline \text { race cars } & 5,000 & 35,000 & 40,000 \\\hline \text { Expected Machine Hours } & & & \\\hline \text { planes } & 17,000 & 3,000 & 20,000 \\\hline \text { race cars } & 3,000 & 7,000 & 10,000 \\\hline \text { Actual Direct Labor Hours } & & & \\\hline \text { planes } & 4,500 & 5,300 & 10,000 \\\hline \text { race cars } & 5,500 & 34,500 & 40,000 \\\hline \text { Actual Machine Hours } & & & \\\hline \text { planes } & 16,500 & 3,500 & 20,000 \\\hline \text { race cars } & 3,200 & 6,800 & 10,000 \\\hline\end{array}$$ What are the departmental overhead rates for the molding and finishing department respectively?

• A)$25; $2.50
• B)$8.33; $2
• C)$25; $10
• D)$12.50; $2.50

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Definitions:

Recessive Gene

A gene that expresses its traits only when paired with an identical gene, as opposed to a dominant gene's traits which can manifest with only one copy.

Heterozygous Pair

A genetic condition where an individual has two different alleles of a particular gene, one inherited from each parent.

Down Syndrome

A genetic disorder caused by the presence of an extra 21st chromosome, leading to developmental and physical characteristic differences.

Mental Retardation

An outdated and now considered offensive term for intellectual disability, which is characterized by limitations in intellectual functioning and adaptive behavior.