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Abnormal spoilage is charged to the job that caused it. True False The following information is available pertaining to the Production Division of Clarkson Enterprises:

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Abnormal spoilage is charged to the job that caused it. True False The following information is available pertaining to the Production Division of Clarkson Enterprises: Total Overhead costs Assembly Dept. $7,500 7,500 2,500 Finishing Dept. $22,500 2,500 7,500 Direct labor hours $30,000 10,000 10,000 Machine hours Production information pertaining to Job 4X5: Total Assembly Dept. $1,250 Finishing Dept. $0 Prime costs $1,250 Direct labor hours 250 0 250 Machine hours 0 0 0 Units produced 500 0 500 Using the plantwide overhead rate based on direct labor hours what is the cost of Job 4X5? Oa. $2,000 Ob. $8,750 Oc. $1,250 Od. $31,250 If applied overhead is greater than actual overhead, it is called overapplied overhead. True False

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