Sheppard Manufacturing Uses Departmental Cost Driver Rates to Allocate Manufacturing

question 103

Multiple Choice

Sheppard Manufacturing uses departmental cost driver rates to allocate manufacturing overhead costs to products. Manufacturing overhead costs are allocated on the basis of machine hours in the Machining Department and on the basis of direct labor hours in the Assembly Department. At the beginning of 2011, the following estimates were provided for the coming year: The accounting records of the company show the following data for Job #316:
-For the Machining Department,what is the annual manufacturing overhead cost driver rate?

• A)$4.00 per machine hour
• B)$4.20 per machine hour
• C)$4.67 per machine hour
• D)$5.25 per machine hour

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Definitions:

Central-plan Form

An architectural layout designed with a primary central space surrounded by symmetrical areas on each side, common in many churches and public buildings.

Hemispherical Dome

A type of dome that forms half of a perfect sphere, often used in architecture to cover large circular spaces.

Emperor Leo III

Byzantine Emperor known for initiating the policy of iconoclasm, which involved the destruction of religious images, leading to extensive controversy and conflict within the Empire.

Iconoclasm

The destruction of religious or sacred images. In Byzantium, the period from 726 to 843 when there was an imperial ban on such images. The destroyers of images were known as iconoclasts. Those who opposed such a ban were known as iconophiles.