Jacob Company Has Two Support Departments,Maintenance Department and Personnel Department,and

Multiple Choice

Jacob Company has two support departments,Maintenance Department and Personnel Department,and two producing departments,X and Y.The Maintenance Department costs of $60,000 are allocated on the basis of standard service used.The Personnel Department costs of $9,000 are allocated on the basis of number of employees.The direct costs of departments X and Y are $18,000 and $30,000,respectively. Data on standard service hours and number of employees are as follows:
$\begin{array}{lrrrr}& \text { Maint. } & \text { Person. } & \text { Dept. } & \text { Dept. } \\& \text { Dept. } & \text { Dept. } & \mathbf { x } & \mathbf { Y } \\\text { Standard service hours used } & 100 & 50 & 300 & 150 \\\text { Number of employees } & 5 & 10 & 45 & 45 \\& & & & \\\text { Direct lahour houre } & 50 & 5 n & 250 & 250\end{array}$
Predetermined overhead rates for departments X and Y,respectively,are based on direct labour hours.
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What is the overhead rate for department X assuming the direct method is used?

A) $72.00
B) $125.00
C) $232.00
D) $250.00