Alex had purchased a battery-operated drill. The drill overheated and exploded when he tried to use it. It was determined that the explosion was due to a problem with how the drill was manufactured. Alex can lodge a complaint about the drill at the _____

a. Consumer Product Safety Commission
b. Consumer Protection Commission

c. Federal Trade Commission

d. Department of Trade


ANSWER: a

The sole purpose of the Consumer Product Safety Commission is to protect the health and safety of consumers in and around their homes .The CPSC has the power to set mandatory safety standards for almost all products consumers use (about 15,000 items) and can fine offending firms up to $500,000 and sentence their officers to up to a year in prison.

Business

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Ahlheim Corporation has two production departments, Forming and Assembly. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Forming Department's predetermined overhead rate is based on machine-hours and the Assembly Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates:  FormingAssemblyMachine-hours 16,000 15,000Direct labor-hours 2,000 6,000Total fixed manufacturing overhead cost$102,400$55,200Variable manufacturing overhead per machine-hour$2.30  Variable manufacturing overhead per direct labor-hour  $4.50 During the current month the company started and finished Job T924. The following data were recorded

for this job: Job T924:FormingAssemblyMachine-hours 70 20Direct labor-hours 30 40Direct materials$870$385Direct labor cost$630$840The total amount of overhead applied in both departments to Job T924 is closest to: A. $1,705 B. $1,157 C. $548 D. $609

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In the percent increase or decrease problems, the portion is:

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