Assume That the Assembly Department Allocates Overhead Based on Machine

question 90

Multiple Choice

Assume that the Assembly Department allocates overhead based on machine hours,and the Finishing Department allocates overhead based on direct labor hours.How much total overhead will be assigned to a product that requires 1 direct labor hour and 2.5 machine hours in the Assembly Department,and 3.5 direct labor hours and 0.5 machine hours in the Finishing Department?

• A)$13.00.
• B)$10.50.
• C)$2.50.
• D)$11.00.
• E)$7.50.

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Definitions:

Invested

The act of allocating resources, usually money, into something to earn a return or profit.

Interest Rate

The percentage of a sum of money charged for its use, typically expressed as an annual percentage.

Period

A specified duration of time characterized by particular events, conditions, or phenomena.

Interest

The expense associated with taking out a loan, usually shown as a percentage of the total amount loaned.