Blitzer Enterprises Has Identified Three Cost Pools and Three Corresponding

question 20

Multiple Choice

Blitzer Enterprises has identified three cost pools and three corresponding cost drivers to allocate overhead costs. The following estimates are provided for the coming year:

The accounting records show the Gergen Job consumed the following resources:

-If Blitzer Enterprises uses the three activity cost pools to allocate overhead costs,what are the activity-cost driver rates for the supervision of direct labor,machine maintenance,and facility rent,respectively?

• A)$1.20 per direct labor hour, $0.50 per machine hour, $3.60 per sq ft
• B)$2.50 per direct labor hour, $0.50 per machine hour, $1.00 per sq ft
• C)$0.80 per direct labor hour, $0.10 per machine hour, $2.40 per sq ft
• D)$0.60 per direct labor hour,$0.40 per machine hour,$2.60 per sq ft

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Definitions:

Compounded Semiannually

Interest calculation method where the interest is added to the principal sum every six months, thereby earning interest on interest.

Promissory Note

A financial instrument in which one party (the maker) promises in writing to pay a determinate sum of money to the other (the payee), either at a fixed or determinable future time or on demand.

Missing Interest Rate

The not specified or unidentified rate of interest in a financial context.

Real Compound Rate of Return

The annual rate of return on an investment, adjusted for inflation, that compounds over time.