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

question 19

Multiple Choice

The following is taken from Clausen Company's internal records of its factory with two operating departments. The cost driver for indirect labor is direct labor hours, 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. $$\begin{array} { l c c } & \text { Direct Labor Hours } & \text { Machine Hours } \\\text { Operating Dept. 1 } & 980 & 9,200 \\\text { Operating Dept. 2 } & 2,100 & 6,000 \\\text { Totals } & 3,080 & 15,200 \\ & & \\\text { Factory overhead costs } & & \\\text { Rent and utilities } & & \$ 21,700 \\\text { Indirect labor } & & 17,300\\\text { Depreciation - Equipment } & &14,000 \\\end{array}$$ Total factory overhead $ 53,000

• A) $11,795.
• B) $14,092.
• C) $25,887.
• D) $27,112.
• E) $26,500.

---

Definitions:

Puberty

The biological stage of development characterized by changes that lead to reproductive capacity.

Infectious Diseases

Diseases caused by pathogens (like bacteria, viruses, fungi, or parasites) that can be spread, directly or indirectly, from one individual to another.

Developmental Disorders

A group of psychiatric conditions originating in childhood that involve serious impairment in different areas such as speaking, walking, or interacting with others.

Sensorimotor Stage

The first stage of Piaget's theory of cognitive development, occurring from birth to about 2 years of age, where infants learn about the world through their sensory experiences and motor actions.