Auburn,Inc

question 97

Multiple Choice

Auburn,Inc.'s overhead costs of $700,000 consist of machining $400,000; inspecting $200,000; and packaging $100,000.Machining works 4,000 hours a year,500 inspections occur each year,and 1,000 packing order occur each year.Information on the company's two products are as follows: Alpha Omega
Machining hours 1,000 3,000
Inspections 100 400
Packing orders 350 650
Direct labor hours 1,700 1,800
Determine how much overhead is allocated to Omega assuming the use of a single overhead rate based on direct labor hours and assuming the use of ABC,respectively.

• A)$340,000 and $360,000
• B)$340,000 and $175,000
• C)$360,000 and $175,000
• D)$360,000 and $525,000

---

Definitions:

Atmosphere

The layer of gases surrounding a planet, essential for life on Earth, providing air to breathe and protecting from harmful solar radiation.

Assimilation

The process by which individuals or groups of differing ethnic heritage are absorbed into the dominant culture of a society.

Chlorophyll

A pigment found in plants and algae that absorbs sunlight for photosynthesis, giving them their green color.

Denitrification

The microbial process of reducing nitrate and nitrite to gaseous forms of nitrogen, such as nitrogen gas, effectively removing nitrogen from ecosystems.