A Company Incurs $1,200,000 of Overhead Each Year in Three

question 71

Multiple Choice

A company incurs $1,200,000 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: $$\begin{array} { l c r } \text { Department } & \text { Expected use of Driver } & \text { Cost } \\\hline \text { Processing } & 800 & \$ 500,000 \\\text { Packaging } & 200,000 & 500,000 \\\text { Testing } & 2,000 & 200,000\end{array}$$ Production information for sludge is as follows: $$\begin{array} { l c } \text { Department } & \text { Expected use of Driver } \\\hline \text { Processing } & 500 \\\text { Packaging } & 80,000 \\\text { Testing } & 400\end{array}$$ Calculate the amount of overhead assigned to sludge.

• A)$600,000
• B)$552,500
• C)$647,500
• D)$460,000

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Definitions:

Restorative Justice

An approach to justice that emphasizes repairing the harm caused by criminal behavior through cooperative processes that include all stakeholders.

Social Values

The principles and standards of behavior deemed important and beneficial by a society or community.

Social Solidarity

The sense of community and mutual support that binds members of a society together, often seen as crucial for the stability and functioning of social groups.

Durkheim

A French sociologist, social psychologist, and philosopher who is best known for his works on social cohesion, the division of labor, and the concept of anomie.