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

question 141

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: $\begin{array}{crr}\text { Department}&\text { Estimated use of Driver}&\text { Cost }\\\text { Ordering and Receiving } & 2,000 & \$ 1,200,000 \\\text { Mixing } & 50,000 & 1,500,000 \\\text { Testing } & 1,500 & 1,350,000\end{array}$
$\text { Production information for Goo is as follows: }$
$\begin{array}{cr}\text { Department }&\text { Estimated use of Driver }\\\text { Ordering and Receiving } & 400 \\\text { Mixing } & 20,000 \\\text { Testing } & 500\end{array}$ Compute the amount of overhead assigned to Goo.

• A) $1,012,500
• B) $1,290,000
• C) $1,582,146
• D) $2,025,000

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Definitions:

Schedule View

A calendar-based perspective or layout in software applications that displays tasks, events, or timelines according to their time-related attributes.

Meeting Request

A digital invitation sent through email or calendar applications, proposing a specific time and place for a meeting and often allowing recipients to accept or decline.

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Recurring Appointment

An event or meeting that is scheduled to take place at regular intervals, such as weekly or monthly.