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X The following information is available pertaining to the Production Division of Clarkson Enterprises: Overhead costs Direct labor hours Machine hours Assembly Dept.. Finishing Dept.
X The following information is available pertaining to the Production Division of Clarkson Enterprises: Overhead costs Direct labor hours Machine hours Assembly Dept.. Finishing Dept. $7,500 $22,500 7,500 2,500 2,500 7,500 Production information pertaining to Job 4X5: Prime costs Direct labor hours Machine hours Units produced Assembly Dept. $1,250 250 0 500 Finishing Dept. $0 0 0 0 Total $30,000 10,000 10,000 Total $1,250 250 0 500 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. Based on departmental overhead rates, what is the cost of Job 4X5? O a. $1,250 O b. $1,500 O c. $7,500 O d. $8,750
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