The Following Is Taken from Jeffers Company's Internal Records of Its

question 43

Multiple Choice

The following is taken from Jeffers Company's internal records of its factory with two operating departments. The cost driver for indirect labor is direct labor costs, and the cost driver for the remaining items is number of hours of machine use. Compute the total amount of overhead allocated to Dept. 2 using activity-based costing. $\begin{array} { | l | r | r | } \hline & \text { Direct Labor } & \text { Machine Use Hours } \\\hline \text { Operating Dept. 1 } & \$ 11,800 & 2,300 \\\hline \text { Operating Dept. 2 } & \underline { 25,600 } & \underline { 1,500 } \\\hline \text { Totals } & \$ 37,400 & \underline { 3,800 } \\\hline & & \\\hline \text { Factory overhead costs } & & \\\hline \text { Rent and utilities } & & \$ 12,900 \\ \hline \text { Indirect labor } & & 11,220\\\hline \text { Depreciation - Equipment } & &18,000 \\\hline \text { Total factory overhead } & & \$ 42,120 \\\hline\end{array}$

• A) $73,600.
• B) $28,830.
• C) $16,392.
• D) $22,243.
• E) $19,877.

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Definitions:

Lesser Tubercles

Lesser Tubercles are small, rounded projections found on the humerus bone near the shoulder, playing a vital role in arm movement by providing attachment points for muscles.

Greater Tubercles

Projections located on the proximal end of the humerus bone, providing attachment for shoulder muscles.

Flexor Carpi Radialis

A muscle in the forearm that assists in bending the wrist towards the thumb side.

Abduct

Abduct refers to the movement of a limb or another part of the body away from the midline or another part of the body.