Consider the Following Information Attributed to the Material Management Department

question 142

Multiple Choice

Consider the following information attributed to the material management department
Budgeted usage of materials-handling labor-hours 3500
Budgeted cost pools:
Fixed costs $154,000
Variable costs $126,000 (3500 hours x $36 per hour)
The company uses the single-rate method to allocate support costs to the Machining and Assembly Departments. Assuming that the actual hours tracked in the Machining and Assembly department are 500 for the month, what would be the allocation rate and how much cost would be allocated to the Machining and Assembly Department for the operations of the month? (Round final answers to the nearest dollar.)

• A) $80 an hour for a total of $40,000
• B) $36 an hour for a total of $40,000
• C) $36 an hour for a total of $18,000
• D) $560 an hour for a total of $80

---

Definitions:

Autoclave

A device that uses pressurized steam to sterilize instruments and equipment.

Optical Microscope

An instrument that uses visible light and lenses to magnify small objects, allowing them to be observed in detail.

Magnifying Lens

An optical device used to make objects appear larger than they are, enhancing the visualization of small details.

Objective

Pertaining to data that are readily apparent and measurable, such as vital signs, test results, or physical examination findings.