The Following Information Is Available from the Records of Diamond

question 161

Multiple Choice

The following information is available from the records of Diamond Cut, Inc.: $$\begin{array} { l c } \text { Direct Materials-Assembly Department } & \$ 10,000 \\\text { Direct Materials-Finishing Department } & 15,000 \\\text { Direct Labor-Assembly Department } & 11,000 \\\text { Direct Labor-Finishing Department } & 20,000 \\\text { Applied Overhead-Assembly Department } & 11,000 \\\text { Applied Overhead-Finishing Department } & 20,000 \\\text { Actual Overhead-Assembly Department } & 12,500 \\\text { Actual Overhead-Finishing Department } & 17,500\end{array}$$ What are the conversion costs in the Finishing Department?

• A)$35,000
• B)$37,500
• C)$40,000
• D)$57,500

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Definitions:

Occupational Safety and Health Act

A United States law established in 1970 to ensure workplace safety and health standards.

Workplace Safety

Practices and policies implemented to ensure the physical and emotional well-being of employees in their working environment.

ERISA

The Employee Retirement Income Security Act of 1974, a federal law that sets minimum standards for most voluntarily established pension and health plans in private industry.

Fiduciary Responsibility

The obligation of one party to act in the best interest of another within a relationship of trust, such as that between a trustee and the beneficiaries.