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

question 14

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 rent and utilities allocated to Dept. 2 using activity-based costing. $$\begin{array} { l c r } & \text { Direct Labor Hours } & \text { Machine Hours } \\\text { Operating Dept. 1 } & 980 & 9,200 \\\text { Operating Dept. 2 } & 2,100 & 6,000 \\\text { Totals } & 3,080 & 15,200 \\& & \\\text { Factory overhead costs } & &\\\text { Rent and utilities } & & \$ 21,700 \\ \text { Indirect labor } & & 17,300\\\text { Depreciation - Equipment } & &14,000\\\text { Total factory overhead }&& \$ 53,000\end{array}$$

• A) $8,566.
• B) $14,152.
• C) $6,000.
• D) $13,134.
• E) $14,092.

---

Definitions:

Positive Attitude

A mental state that involves looking at situations from a constructive and optimistic perspective, focusing on opportunities and solutions rather than problems.

RN Managing Care

Refers to the responsibilities of Registered Nurses in overseeing patient care, including assessment, planning, implementation, and evaluation of treatment plans.

AIDET

An acronym for Acknowledge, Introduce, Duration, Explanation, and Thank you; a communication framework used by healthcare providers to enhance patient interactions.

RN Managing Care

A registered nurse's responsibility to oversee and coordinate all aspects of patient care in a healthcare setting.