The Following Information Is Available Pertaining to the Production Division

question 71

Multiple Choice

The following information is available pertaining to the Production Division:
$\begin{array}{lrrr}&\text { Mixing Dept. }&\text { Finishing Dept. }&\text { Total }\\\text { Overhead costs } & \$ 7,500 & \$ 22,500 & \$ 30,000 \\\text { Direct labour hours } & 7,500 & 2,500 & 10,000 \\\text { Machine hours } & 2,500 & 7,500 & 10,000\end{array}$

$\text { Production information pertaining to Job } 4 \text { X5: }$
$\begin{array}{lrrr}&\text { Mixing Dept. }&\text { Finishing Dept. }&\text { Total }\\\text { Prime costs } & \$ 1,250 & \$ 0 & \$ 1,250 \\\text { Direct labour hours } & 250 & 0 & 250 \\\text { Machine hours } & 1 & 0 & 1 \\\text { Units produced } & 500 & 0 & 500\end{array}$
-Refer to the figure.Using the plantwide overhead rate based on direct labour hours,what is the cost of Job 4X5?

• A)$1,250
• B)$2,000
• C)$8,750
• D)$31,250

Identify the components of a master budget and their interrelationships.

Analyze the impact of inventory policies on budgeting (both finished goods and raw materials).

Compute budgeted financial outcomes, such as cost of goods sold, direct labor costs, and purchase needs.

Exercise critical thinking to solve budgeting problems and make informed decisions based on budget data.

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Definitions:

Positive Self-Regard

The personal acceptance and appreciation of oneself, including the ability to maintain a positive self-view.

Positive Regard

The acceptance, respect, and support that an individual receives from others, considered important for self-esteem and psychological development.

Acceptance

The act of receiving or taking something offered.

Psychological Adjustment

The process of balancing and adapting one's personal or psychological aspects to the demands or needs of social and environmental contexts.