The Following Information Pertains to Amon Schrock Corporation Amon Schrock Corporation Does Not Divide Costs into Fixed and |

question 78

Multiple Choice

The following information pertains to Amon Schrock Corporation: $$\begin{array} { | l | r | r | r | r | } \hline & { \text { Support Departments } } & & { \text { Producing Departments } } \\\hline & \text { Personnel } & \text { Maintenance } & \text { Fabrication } & \text { Assembly } \\\hline \text { Budgeted overhead } & \$ 80,000 & \$ 144,000 & \$ 280,000 & \$ 320,000 \\\hline \text { Direct labor hours } & 4,000 & 5,000 & 16,000 & 20,000 \\\hline \text { Machine hours } & - & - & 24,000 & 16,000 \\\hline \text { Number of employees } & 16 & 20 & 60 & 100 \\\hline\end{array}$$ Amon Schrock Corporation does not divide costs into fixed and variable components. Personnel costs are allocated based on the number of employees, and maintenance costs are allocated based on machine hours.
Predetermined overhead rates for fabrication and assembly are based on direct labor hours.
If the direct method is used to allocate support department costs, the predetermined overhead rate for the Fabrication Department (rounded to two decimal places) is

• A)$28.80.
• B)$24.78.
• C)$7.28.
• D)$5.40.

---

Definitions:

Alzheimer's Caregivers

Individuals who provide care and support for someone suffering from Alzheimer's disease, a chronic neurodegenerative condition.

Memory Loss

A condition characterized by the inability to remember information, events, or experiences, with partial or total forgetfulness.

Diagnosis

The process of identifying a disease or condition from its symptoms and signs through examination, testing, and analysis.

Feelings of Loss

Emotional experiences associated with grief or mourning, often resulting from the death of a loved one or the end of a significant relationship.