A Company Produces Computer Chips That Go Through Two Operations

question 141

True/False

A company produces computer chips that go through two operations, operation A1 and operation B2, before they are complete.Expected costs and activities for the two departments are shown below.Departmental overhead rates are based on machine hours in department A1 and direct labor hours in department B2.Therefore, the overhead rates for department A1 and department B2 are $3.62 per machine hour and $5.73 per direct labor hour, respectively.
$$\begin{array} { l c c } & \text { Department } & \text { Department } \\& \text { Al } & \text { B2 } \\\text { Machine hours } & 40,000 \mathrm { MH } & 30,000 \mathrm { MH } \\\text { Direct labor hours } & 36,200 \mathrm { DLH } & 28,650 \mathrm { DLH } \\\text { Overhead costs } & \$ 144,800 & \$ 171,900\end{array}$$

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Definitions:

Methyl Group

A nonpolar functional group; abbreviated CH3.

Magnesium Ion

Magnesium ion is a positively charged ion essential for many cellular processes, including enzyme activity, energy production, and neurotransmission.

Phosphate Group

A chemical group consisting of a phosphorus atom bound to four oxygen atoms, important in energy transfer and molecular structure in biological systems.

Hydrocarbon Side

Refers to the nonpolar, hydrophobic part of a molecule that consists of just hydrogen and carbon, commonly found in organic compounds and influencing their chemical behavior.