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

question 30

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 indirect labor 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) $13,134.
• B) $8,566.
• C) $5,505.
• D) $11,795.
• E) $8,474.

Understand the concept of work in process inventory and how to calculate its ending balance.

Prepare a schedule of cost of goods manufactured.

Recognize costs necessary and integral to the manufacture of finished products.

Understand managerial accounting's purpose and its distinction from financial accounting.

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Definitions:

Lynch Violence

Extrajudicial killings, primarily by hanging, often racially motivated and used as a tool of terror and suppression against African Americans, especially in the southern United States.

Sexual Conduct

Refers to behaviors or activities related to sexual actions and interactions between individuals.

Southern White Mobs

Groups of white individuals in the Southern United States who, especially during the 19th and early 20th centuries, participated in acts of racial violence and lynching against African Americans.

Civil War Remembrance

The act of remembering and commemorating the American Civil War, involving activities such as ceremonies, reenactments, and educational programming to understand the war's significance.