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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

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 hours

7,500

2,500

10,000

Machine hours

2,500

7,500

10,000

?

?

?

?

Production information pertaining to Job 4X5:

?

?

?

?

?

?

Assembly Dept.

Finishing Dept.

Total

Prime costs

$1,250

$0

$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?

a.

$2,000

b.

$8,750

c.

$31,250

d.

$1,250

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