The Following Information Pertains to Utter Company

question 19

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 labor hours.
What is the amount of maintenance costs allocated to the Assembly Department using the direct method? (Round amounts to dollars.)

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

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Definitions:

Supplier Sustainability

The practice of evaluating and choosing suppliers based on their environmental and social performance, in addition to their economic considerations.

Corporate Codes of Conduct

Formal statements delineating the ethical standards and behaviors expected from employees and stakeholders within a corporation, aiming to guide actions and decision-making.

Third-Party Certifications

Certifications or validations provided by independent organizations or bodies that verify a particular standard or quality has been met.

Arbitration

A method of dispute resolution where an impartial third party, known as an arbitrator, makes a decision to resolve a disagreement between two or more parties.