Compton Corporation the Following Overhead Cost Information Is Available for Compton

question 74

Multiple Choice

Compton Corporation The following overhead cost information is available for Compton Corporation for 2011:
During the year, 5,000 purchase orders were issued; 20,000 shipments were received; 3,000 machine setups were performed; and 4,000 inspections were conducted.
Refer to the Compton Corporation information above. What is the overhead rate for the receiving activity?

• A) $1.88 per shipment received
• B) $6.00 per shipment received
• C) $3.00 per shipment received
• D) $0.33 per shipment received

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Definitions:

Delphi Method

An iterative process used for collecting and distilling the knowledge of a panel of experts through a series of questionnaires interspersed with feedback.

Forecast

A prediction or estimate of future events, especially concerning weather or economic conditions.

Questionnaires

A research instrument consisting of a series of questions for the purpose of gathering information from respondents.

Delphi Method

A forecasting process framework based on the results of multiple rounds of questionnaires sent to a panel of experts.