A Company Has Two Production Departments and Two Service Departments

question 32

Multiple Choice

A company has two production departments and two service departments (Maintenance and Stores) . The overhead costs of each of the departments are as follows. 11ec37eb_8bb0_6cff_97b9_8dc28be6d6c9__00 The following equations represent the reapportionment of each of the service department overheads to the other. M = 4,700 + 0.1S S = 5,800 + 0.2M Where M = total Maintenance overhead after reapportionment from Stores S = total Stores overhead after reapportionment from Maintenance 60% of the total Maintenance overhead and 50% of the total Stores overhead are to be apportioned to Production Department 1. The total production overhead for Production Department 1 after reapportionment of the service departments' overhead costs is closest to:

• A) $71,672
• B) $75,500
• C) $70,720
• D) $71,821

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Definitions:

Hydrolytic Destruction

A chemical process in which water is used to break down compounds, often leading to the breakdown or degradation of materials.

Cell Necrosis

A form of cell injury leading to the premature death of cells in living tissue by autolysis.

Glycoprotein

A protein with covalently attached carbohydrates

Golgi Stacks

A structure within the cell composed of a series of flattened membrane sacs involved in the modification, sorting, and packaging of proteins.