The Following Information Is Available Pertaining to the Production Division

question 134

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:
$\begin{array}{lrrr}&\text { Assembly Dept. }& \text { Finishing Dept. } &\text { Total }\\\text { Prime costs } & \$ 1,250 & \$ 0 & \$ 1,250 \\\text { Direct labor hours } & 250 & 0 & 250 \\\text { Machine hours } & 0 & 0 & 0\\\text { Units produced }&500&0&500\end{array}$
What is the overhead rate for the Finishing Department based on machine hours?

• A)$9.00
• B)$3.00
• C)$2.25
• D)$1.00

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Definitions:

Embryos

Early developmental stages of a multicellular organism following fertilization, before reaching the fetal stage.

Trimester

One of the three roughly three-month periods into which pregnancy is divided.

Polygenic Inheritance

Pattern of inheritance in which multiple genes at different sites on chromosomes affect a complex trait.

Recessive Inheritance

Pattern of inheritance in which a child receives identical recessive alleles, resulting in expression of a nondominant trait.