The following information pertains to Utter Company: Utter Company does not divide costs into fixed and variable components. Personnel costs are allocated based on the number of employees, and maintenance costs are allocated based on machine hours.
Predetermined overhead rates for fabrication and assembly are based on direct labour hours.
What is the amount of maintenance costs allocated to the Assembly Department using the direct method? (Round amounts to pounds.)

A) £28,800
B) £48,000
C) £14,400
D) £38,160

Question

The following information pertains to Utter Company: Utter Company does not divide costs into fixed and variable components. Personnel costs are allocated based on the number of employees, and maintenance costs are allocated based on machine hours.
Predetermined overhead rates for fabrication and assembly are based on direct labour hours.
What is the amount of maintenance costs allocated to the Assembly Department using the direct method? (Round amounts to pounds.)

A) £28,800 
B) £48,000 
C) £14,400 
D) £38,160

Quizplus · Accepted Answer

The Answer of The following information pertains to Utter Company: Utter Company does not divide costs into fixed and variable components. Personnel costs are allocated based on the number of employees, and maintenance costs are allocated based on machine hours.
Predetermined overhead rates for fabrication and assembly are based on direct labour hours.
What is the amount of maintenance costs allocated to the Assembly Department using the direct method? (Round amounts to pounds.)

A) £28,800 
B) £48,000 
C) £14,400 
D) £38,160

The Following Information Pertains to Utter Company: Utter Company Does