Question
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
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.$2,000b
b.$1,250
c.$8,750
d.$31,250
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