The Rainbow Company Manufactures Paint in Two Processes: Mixing and Cooking

question 50

Multiple Choice

The Rainbow Company manufactures paint in two processes: Mixing and Cooking. Total costs incurred in the mixing and cooking departments are as follows: $\begin{array}{lll}&\text { Direct Materials }&\text { Direct labor }\\\text { Mixing } & \$ 60,000 & \$ 80,000 \\\text { Cooking } & \$ 25,000 & \$ 50,000\end{array}$ Indirect manufacturing costs were $90,000 for the Mixing department and $180,000 for the Cooking department. Rainbow Company manufactures two products, Superior Paint and Deluxe Paint. Costs are allocated to these products in the following proportions: $\begin{array}{lllll}&\text { Mixing }&&\text { Cooking }\\&DM&DL&DM&DL\\\text { Superior } & \mathbf{4 0} \% & \mathbf{7 0} \% & \mathbf{5 0} \% & \mathbf{4 0} \% \\\text { Deluxe } & \mathbf{6 0} \% & \mathbf{3 0} \% & \mathbf{5 0} \% & \mathbf{6 0} \%\end{array}$ Indirect cost is allocated in proportion to the direct labor costs with each department. The Mixing department cost allocated to Deluxe is:

• A) $60,000
• B) $36,000
• C) $87,000
• D) $143,000

---

Definitions:

Allergic Reaction

A hypersensitive response of the immune system to substances that are usually harmless, such as pollen, food, or medication.

Bowel Prep

The process of cleansing the intestines prior to a diagnostic procedure, such as a colonoscopy, typically by using laxatives.

Voiding

The act of urinating, or the body's process of expelling urine.

Urinal

A plumbing fixture or device designed for the purpose of urinating, typically found in public or semi-public restrooms.