Sampson Company Manufactures Two Products, Plain and Complex

question 81

Multiple Choice

Sampson Company manufactures two products, plain and complex.The company has estimated its overhead in the order-processing department to be $480,000.The company produces 50,000 plain and 80,000 complex each year.Plain production requires 25,000 machine hours, complex production requires 50,000 machine hours.The company places raw materials orders 10 times per month, 2 times for raw materials for plain and the remainder for raw materials for complex.How much of the order processing overhead should be allocated to complex?

• A)$240,000
• B)$320,000
• C)$295,386
• D)$384,000

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Definitions:

Impermeable Unit

A geological formation or material that does not allow fluids to pass through it.

Surface Water

Water that occurs in streams, rivers, lakes, oceans, and other settings on Earth’s surface.

Groundwater

Moisture trapped below the ground in the soil or within fissures and cavities of rocks.

Cross Section

A diagram or slice that shows the internal structure of a particular object or area, made by cutting or visualizing a cut through the object.