Use the Information Below to Answer the Following Question(s)

question 128

Multiple Choice

Use the information below to answer the following question(s) .Jim's Computer Products manufactures keyboards for computers.In June, the two production departments had budgeted allocation bases of 10,000 machine hours in Department 1 and 5,000 direct manufacturing labour hours in Department 2.The budgeted manufacturing overheads for the month were $34,500 and $37,500, respectively.For Job 501, the actual costs incurred in the two departments were as follows:
Job 501 incurred 1,000 machine hours in Department 1 and 300 manufacturing labour hours in Department 2.The company uses a budgeted departmental overhead rate for applying overhead to production.
-What is the budgeted indirect cost allocation rate for Department 1?

• A)$3.45 per hour
• B)$3.75 per hour
• C)$6.90 per hour
• D)$7.50 per hour
• E)$8.00 per hour

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Definitions:

R&D Spending

Funds allocated by businesses, organizations, or governments towards research and development in order to innovate and improve products or services.

Development (Innovation and Imitation)

The process in which economies grow or change over time through the introduction of new technologies (innovation) and the adoption of successful technologies or methods from others (imitation).

Technological Advance

Refers to the development and application of innovative techniques, equipment, and processes that improve productivity, efficiency, and outcomes in various fields.