The Following Information Is Available Pertaining to the Production Division

question 91

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 are the total overhead costs assigned to Job 4X5, assuming the Assembly and Finishing Departments use direct labor hours and machine hours for their bases, respectively?

• A)$62.50
• B)$250.00
• C)$750.00
• D)$1,500.00

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Definitions:

IS Services

Information Systems Services, which involve the management, implementation, and maintenance of IT solutions that support business operations.

Information Center Manager

A professional responsible for overseeing the operations of a center that provides data and information services.

Increasingly Strategic

Pertaining to the growing importance and deliberate planning and execution of actions to achieve long-term objectives or competitive advantage.

IS Department

The Information Systems Department is responsible for overseeing the technology infrastructure and systems within an organization to support its operations and objectives.