Scoresby Co

question 56

Multiple Choice

Scoresby Co.uses 6 machine hours and 2 direct labor hours to produce Product X.It uses 8 machine hours and 16 direct labor hours to produce Product Y.Scoresby's Assembly and Finishing departments have factory overhead rates of $240 per machine hour and $160 per direct labor hour,respectively.How much overhead cost will be charged to the two products?

• A) Product X = $3,200; Product Y = $9,600
• B) Product X = $800; Product Y = $800
• C) Product X = $1,760; Product Y = $4,480
• D) Product X = $1,440; Product Y = $2,560

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Definitions:

Groomer

A person who cleans, brushes, and sometimes trims the hair or fur of animals, particularly pets.

Grooming Fee

A charge for services related to the cleaning and maintenance of appearance, often associated with pets or personal care.

Maximizing Profits

The process or strategy employed by businesses to achieve the highest possible profit margins by optimizing production, sales, and pricing.

Payment to Labor

The compensation that workers receive in exchange for their labor, typically in the form of wages or salaries.