The Following Information Pertains to Utter Company

question 100

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.

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Predetermined overhead rates for fabrication and assembly are based on direct labor hours.(Round amounts to dollars.)
If the direct method is used to allocate support department costs, the predetermined overhead rate for the Fabrication Department (rounded to two decimal places) would be

• A) $28.80.
• B) $5.40.
• C) $7.28.
• D) $24.78.

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Definitions:

Decompression

The reduction in pressure experienced by a body, often leading to the expansion of gases held in solution under higher pressure.

Mid-ocean Ridges

Mountainous formations under the sea, created by the shifting of earth's plates, which result in new ocean crust through volcanic processes.

Rising Mantle

The upward movement of the Earth's mantle, often leading to volcanic activity.

Divergent Boundary

A plate-tectonic boundary in which two plates move apart (diverge) relative to one another.