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:

Cardiovascular Problems

Health issues related to the heart and blood vessels, including heart disease, hypertension, and stroke.

Atypical Antipsychotic

A class of medication primarily used to treat psychiatric conditions, with fewer side effects compared to older antipsychotic drugs.

Traditional Antipsychotic

Medications used primarily to treat schizophrenia and related psychotic disorders by blocking dopamine receptors in the brain.

Side Effects

Unintended and often adverse effects that accompany the intended effects of a medication or treatment.