The following is taken from Clausen Company's internal records of its factory with two operating departments. The cost driver for indirect labor is direct labor hours, and the cost driver for the remaining items is number of hours of machine use. Compute the total amount of indirect labor allocated to Dept. 1 using activity-based costing. Direct LaborHours MachineHoursOperating Dept. 1 888 9,900 Operating Dept. 2 2,072 6,600 Totals 2,960 16,500 Factory overhead costs Rent and utilities $21,100 Indirect labor 16,700 Depreciation – Equipment 13,400 Total factory overhead$51,200 The following is taken from Clausen Company's internal records of its factory with two operating departments. The cost driver for indirect labor is direct labor hours,and the cost driver for the remaining items is number of hours of machine use. Compute the total amount of indirect labor allocated to Dept. 1 using activity-basedcosting.Direct LaborMachineHoursHoursOperating Dept. 1Operating Dept. 28889,9002,0726,600Totals2,96016,500Factory overhead costsRent and utilities$21,100Indirect labor16,700Depreciation - Equipment13,400Total factory overhead$51, 200 Multiple Choice$12,660.$5,010.$14,067.$6,600.$52,750.

Particulars Dept. 1 Dept. 2 Total Direct Labor Hours 888 2072 2960 Indirect Labor $16700 x 888 /…

Answered: Compute the total amount of indirect…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following is taken from Clausen Company's internal records of its factory with two operating departments. The cost driver for indirect labor is direct labor hours, and the cost driver for the remaining items is number of hours of machine use. Compute the total amount of indirect labor allocated to Dept. 1 using activity-based costing.

	Direct Labor Hours		Machine Hours
Operating Dept. 1			888		9,900
Operating Dept. 2			2,072		6,600
Totals			2,960		16,500

Factory overhead costs
Rent and utilities				$	21,100
Indirect labor					16,700
Depreciation – Equipment					13,400
Total factory overhead	$	51,200

Multiple Choice
$12,660.
$5,010.
$14,067.
$6,600.
$52,750.

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