A Company Incurs $3,600,000 of Overhead Each Year in Three

question 138

Multiple Choice

A company incurs $3,600,000 of overhead each year in three departments: Processing, Packaging, and Testing.The company performs 800 processing transactions, 200,000 packaging transactions, and 2,000 tests per year in producing 400,000 drums of Oil and 600,000 drums of Sludge.The following data are available: $$\begin{array}{l}\begin{array} { l c r } \text { Department } & \text { Expected Use of Driver } & { \text { Cost } } \\\text { Processing } & 800 & \$ 1,500,000 \\\text { Packaging } & 200,000 & 1,500,000 \\\text { Testing } & 2,000 & 600,000\end{array}\\\text { Production information for the two products is as follows: }\\\\\begin{array}{ll}&\text { Oil }&\text { Sludae }\\\text { Department }&\text { Expected Use of Driver }&\text { Expected Use of Driver }\\\hline \text { Processing } & 300 & 500 \\\text { Packaging } & 120,000 & 80,000 \\\text { Testing } & 1,600 & 400\end{array}\end{array}$$ The amount of overhead assigned to Sludge using ABC is

• A)$1,800,000.
• B)$1,657,500.
• C)$1,942,500.
• D)$1,380,000.

---

Definitions:

Cells Die

A process where cells cease to function or maintain homeostasis, leading to cell death through mechanisms such as apoptosis or necrosis.

Apoptosis

A form of programmed cell death involving a sequence of biochemical events leading to a characteristic cell morphology and death.

Mosaic Development

A rigid developmental pattern in which the fates of cells become restricted early in development. Compare with regulative development.

ABC Genes

Genes that play a crucial role in the development and determination of the floral organ's identity in plants.