The Following Information Was Gathered for Company J,a Manufacturing Company

Essay

The following information was gathered for Company J,a manufacturing company with three departments,A,B,and C:
Manufacturing supplies cost is expected to be $300,000.Possible cost drivers are direct labor hours,direct materials cost,and number of units completed and sold.The three departments have varying amounts for these items.
$\begin{array}{lrrr}& \text { Departrnent A } & \text { Department B } & \text { Departrnent C } \\ \text { Direct labor hours } & 15,000& 40,000 & 45,000 \\\text { Direct materials cost } & \$ 500,000 & \$ 2,500,000 & \$ 2,000,000 \\\text { \# of units expected to be } \\\text { completed and sold } & 80,000 &30,000 &40,000\end{array}$ Based on this information,indicate whether each of the following statements is true or false.