Use the Information Below to Answer the Following Question(s)

question 89

Multiple Choice

Use the information below to answer the following question(s) .Jim's Computer Products manufactures keyboards for computers.In June, the two production departments had budgeted allocation bases of 10,000 machine hours in Department 1 and 5,000 direct manufacturing labour hours in Department 2.The budgeted manufacturing overheads for the month were $34,500 and $37,500, respectively.For Job 501, the actual costs incurred in the two departments were as follows:
Job 501 incurred 1,000 machine hours in Department 1 and 300 manufacturing labour hours in Department 2.The company uses a budgeted departmental overhead rate for applying overhead to production.
-What is the budgeted indirect cost allocation rate for Department 2?

• A)$3.45
• B)$3.75
• C)$4.60
• D)$7.50
• E)$8.00

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Definitions:

Individual Contributor

refers to an employee who contributes to their organization through their individual skills and effort rather than by managing others.

Right Abilities

The skills and competences that perfectly match the requirements of a particular job or task.

Highest Performance Levels

The peak or optimum standards of output or efficiency that an individual or group can achieve.

Stress

A state of tension caused by extraordinary demands, constraints, or opportunities.