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The following information is available pertaining to the Production Division of Clarkson Enterprises: Assembly Dept. Finishing Dept. Total Overhead costs $7,500 $22,500 $30,000 Direct labor

The following information is available pertaining to the Production Division of Clarkson Enterprises:

Assembly Dept.Finishing Dept.Total
Overhead costs$7,500$22,500$30,000
Direct labor hours7,5002,50010,000
Machine hours2,5007,50010,000
Production information pertaining to Job 4X5:
Assembly Dept.Finishing Dept.Total
Prime costs$1,250$0$1,250
Direct labor hours2500250
Machine hours000
Units produced5000500


Based on departmental overhead rates, what is the cost of Job 4X5? Departmental overhead rates for the Assembly Department are based on direct labor hours, while departmental overhead rates for the Finishing Department are based on machine hours.

a.$7,500

b.$1,250

c.$8,750

d.$1,500


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