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

question 37

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 if the company uses a plantwide rate based on machine hours and a product uses 4 machine hours?

• A) $600
• B) $0
• C) $360
• D) $960

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Definitions:

Performance Problems

Issues or deficiencies in an individual's or a group's execution of tasks, which can affect overall productivity and effectiveness.

Cognitive Task Analysis

A method used to study the cognitive processes involved in performing tasks, aimed at designing better training and work processes.

Team Task Analysis

The process of identifying, analyzing, and describing the tasks, responsibilities, and processes of a team within an organization.

Observable Action

An action or behavior that can be seen and measured, often used in performance assessments or research to evaluate outcomes.