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

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

Answer rating: 100% (QA)

Answer Overhead rates Assembly Dept ... View the full answer