Clemson Co -Using ABC, How Much Overhead Is Assigned to Product X

question 13

Multiple Choice

Clemson Co.incurs $700,000 of overhead costs each year in its three main departments, machining ($400,000) , inspections ($200,000) and packing ($100,000) .The machining department works 4,000 hours per year, there are 600 inspections per year, and the packing department packs 1,000 orders per year.Information about Clemson's two products is as follows: $$\begin{array} { l c c } & \text { Product X } & \text { Product } Y \\\text { Machining hours } & 1,000 & 3,000 \\\text { Inspections } & 100 & 500 \\\text { Orders packed } & 350 & 650 \\\text { Direct labor hours } & 1,700 & 1,800\end{array}$$
-Using ABC, how much overhead is assigned to Product X this year?

• A)$168,334
• B)$242,308
• C)$340,000
• D)$350,000

---

Definitions:

Social Barriers

Obstacles that prevent individuals or groups from accessing resources, opportunities, or social acceptance, often based on discrimination or bias.

Primary Labor Market

Segments of the labor market characterized by high wages, good benefits, job security, and working conditions, often requiring higher education or specialized skills.

Deskilling Thesis

The argument that technology and organizational changes reduce the need for skilled labor by simplifying tasks.

Criticisms

The analysis and judgment of the merits and faults of a literary or artistic work, concept, or idea.