Answer the Following Questions Using the Information Below:
Bauer Manufacturing

question 131

Multiple Choice

Answer the following questions using the information below:
Bauer Manufacturing uses departmental cost driver rates to allocate manufacturing overhead costs to products. Manufacturing overhead costs are allocated on the basis of machine-hours in the Machining Department and on the basis of direct labor-hours in the Assembly Department. At the beginning of 20X3, the following estimates were provided for the coming year:
$\begin{array}{lrr}&\text { Machining }&\text { Assembly }\\\text { Direct labor-hours } & 30,000 & 60,000 \\\text { Machine-hours } & 80,000 & 20,000 \\\text { Direct labor cost } & \$ 500,000 & \$ 900,000 \\\text { Manufacturing overhead costs } & \$ 420,000 & \$ 240,000\end{array}$ The accounting records of the company show the following data for Job #316:
$$\begin{array} { l r r } & \text { Machining } & \text { Assembly } \\\text { Direct labor-hours } & 120 & 70 \\\text { Machine-hours } & 60 & 5 \\\text { Direct material cost } & \$ 300 & \$ 200 \\\text { Direct labor cost } & \$ 100 & \$ 400\end{array}$$
-What amount of manufacturing overhead costs will be allocated to Job #316?

• A) $439
• B) $502
• C) $595
• D) $532

---

Definitions:

95th Percentile

A statistical value that represents a value below which 95% of the observations in a group fall.

Logical Reasoning

The process of using a rational, systematic series of steps to make deductions or conclusions based on presented premises or facts.

Graduate Record Exam

A standardized test that is an admissions requirement for many graduate schools in the United States and Canada.

Consistency

The quality of always acting or behaving in the same way, or the degree to which a substance holds together without breaking apart.