Shaver Co Manufactures a Variety of Electric Razors for Men and and Women

question 44

Multiple Choice

Shaver Co. manufactures a variety of electric razors for men and women. The company's plant is partially automated. Listed below is cost driver information used in the product-costing system:What is the total manufacturing overhead assigned to the current order for Women's Razors if the firm uses a volume-based plant wide overhead rate based on direct labor hours?

• A)$112.50.
• B)$150.00.
• C)$187.50.
• D)$9,600.00.
• E)$12,000.00.

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Definitions:

Operations

The activities involved in the day-to-day functions of a business related to producing and delivering its products or services.

Housekeeping Department

A division within a business, often within the hospitality industry, responsible for maintaining cleanliness, orderliness, and standards of hygiene.

Operating Departments

Sections or units within an organization directly involved in its core business activities, responsible for producing its goods or services.

Labor-hours

The total number of hours worked by all employees during a specific period, used as a measure in various calculations and operational decisions.