The Following Information Pertains to Utter Company: Utter Company Does

question 17

Multiple Choice

The following information pertains to Utter Company: Utter Company does not divide costs into fixed and variable components. Personnel costs are allocated based on the number of employees, and maintenance costs are allocated based on machine hours.
Predetermined overhead rates for fabrication and assembly are based on direct labour hours.
What is the amount of maintenance costs allocated to the Assembly Department using the direct method? (Round amounts to pounds.)

• A) £28,800
• B) £48,000
• C) £14,400
• D) £38,160

Differentiate between perpetual and periodic inventory systems, and their implications on financial reporting.

Understand the gross method of accounting for purchases and sales.

Understand how to apply Excel solver in optimizing manufacturing and distribution processes.

Interpret shadow prices and their impact on profit in production constraint scenarios.

---

Definitions:

Backlash

The gapping or play between mating gear teeth usually measured with thickness gauges or a dial indicator.

Fatigue-Type Failures

Failures in materials or components that occur due to repetitive stress or strain over time, leading to cracks or breaks.

Gear Components

The individual parts that make up a gear system, including gears, shafts, bearings, and others, which transmit power and motion.

Spalled Tooth Surfaces

A condition where the surface of gear teeth becomes pitted or flaked off, usually due to fatigue, excessive loading, or material defects.