The Following Information Is Available Pertaining to the Production Division

question 89

Multiple Choice

The following information is available pertaining to the Production Division of Clarkson Enterprises: $\begin{array} { l c c c } & \text { Assembly Dept. } & \text { Finishing Dept. } & \text { Total } \\ \text { Overhead costs } & \$ 7,500 & \$ 22,500 & \$ 30,000 \\ \text { Direct labor hours } & 7,500 & 2,500 & 10,000 \\ \text { Machine hours } & 2,500 & 7,500 & 10,000 \end{array}$
Production information pertaining to Job 4X5:
$\begin{array}{lrrr}&\text { Assembly Dept. }& \text { Finishing Dept. } &\text { Total }\\\text { Prime costs } & \$ 1,250 & \$ 0 & \$ 1,250 \\\text { Direct labor hours } & 250 & 0 & 250 \\\text { Machine hours } & 0 & 0 & 0\\\text { Units produced }&500&0&500\end{array}$
Using the plantwide overhead rate based on direct labor hours what is the cost of Job 4X5?

• A)$1,250
• B)$2,000
• C)$8,750
• D)$31,250

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Definitions:

Ventilation

The process of moving air in and out of the lungs to facilitate gas exchange with the internal environment, primarily involving oxygen and carbon dioxide.

Blood pH

The measure of acidity or alkalinity of the blood, which is typically maintained at around 7.35 to 7.45.

Hering-Breuer Reflex

Sensory impulses from stretch receptors in the lungs arrest inspiration; expiration then occurs.

Overinflation

The condition of being expanded or filled beyond the optimal level, often referring to the lungs or tires.