Kleinveld Inc. The Machinery Department and Assembly Department Are Two Producing Departments

question 54

Multiple Choice

Kleinveld Inc.
The Machinery department and Assembly department are two producing departments in Kleinveld Inc. Machinery’s total overhead is $30 000, using 200 machine hours and 500 direct labour hours. Assembly’s total overhead cost is $45 000, using 300 machine hours and 500 direct labour hours. The Machinery department overhead cost driver for product cost allocation is machine hours, while the Assembly department uses direct labour hours to allocate overhead costs to products.
-What is the overhead allocated to a product that uses 4 direct labour hours in both departments?

• A) $240
• B) $600
• C) $360
• D) $840

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Definitions:

Dynamic Environments

Situations or systems that are constantly changing and require adaptability and flexibility from those within them.

Organic Designs

Flexible, adaptive organizational structures characterized by decentralized decision-making, broad job descriptions, and a network of communications that encourage collaboration.

Narrow Spans Of Control

An organizational structure with a small number of subordinates reporting directly to a manager, allowing for closer supervision.

Adaptive Organizations

Entities that have the ability to adapt and transform in reaction to shifts in market environments, obstacles, and prospects.