Assume That the Assembly Department Allocates Overhead Based on Machine

question 90

Multiple Choice

Assume that the Assembly Department allocates overhead based on machine hours,and the Finishing Department allocates overhead based on direct labor hours.How much total overhead will be assigned to a product that requires 1 direct labor hour and 2.5 machine hours in the Assembly Department,and 3.5 direct labor hours and 0.5 machine hours in the Finishing Department?

• A)$13.00.
• B)$10.50.
• C)$2.50.
• D)$11.00.
• E)$7.50.

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Definitions:

Net Income

The total earnings of a company after all expenses and taxes have been deducted from revenue.

Operating Expenses

Expenses incurred from a company's day-to-day activities, excluding the cost of goods sold, such as rent, utilities, and salaries.

Notes to The Financial Statements

Supplementary information provided alongside the financial statements, offering detailed explanations of the figures, accounting policies, and other relevant data to aid in interpretation.

Net Income

The amount of money a business keeps after deducting all expenditures and taxes from its overall revenue.