A Company Incurs $4,050,000 of Overhead Each Year in Three

question 108

Multiple Choice

A company incurs $4,050,000 of overhead each year in three departments: Ordering and Receiving, Mixing, and Testing.The company prepares 2,000 purchase orders, works 50,000 mixing hours, and performs 1,500 tests per year in producing 200,000 drums of Goo and 600,000 drums of Slime.The following data are available: $\begin{array}{crr}\text { Department }&\text { Expected use of Driver }&\text { Cost }\\\hline \text { Ordering and Receiving } & 2,000 & \$ 1,200,000 \\\text { Mixing } & 50,000 & 1,500,000 \\\text { Testing } & 1,500 & 1,350,000\end{array}$

$\text { Production information for Slime is as follows: }$
$\begin{array}{cr}\text { Department }&\text { Expected use of Driver }\\\text { Ordering and Receiving } & 1,600 \\\text { Mixing } & 30,000 \\\text { Testing } & 1,000\end{array}$ Compute the amount of overhead assigned to Slime.

• A)$2,025,000
• B)$2,467,851
• C)$2,760,000
• D)$3,037,500

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Definitions:

Çatalhöyük

An ancient, large Neolithic and Chalcolithic proto-city settlement in southern Anatolia, notable for its unique architecture and cultural artifacts.

Early Cities

Urban centers that emerged in various parts of the world during ancient times, characterized by their significant populations, economic activities, and social complexities.

Bronze Age

A period in human history characterized by the use of bronze, proto-writing, and other early features of urban civilization, dating from around 3300 to 1200 BCE.