Compton Corporation the Following Overhead Cost Information Is Available for Compton

question 24

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. If Job #229 required 5 purchase orders, 10 shipments, 8 machine setups, and 4 inspections to fill, how much overhead should be assigned to Job #229?

• A) $ 4.06
• B) $303.75
• C) $580.00
• D) $ 85.50

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Definitions:

Commercial Impracticability

A principle that excuses a party from performing their contractual obligation due to the occurrence of events that fundamentally transforms the nature of the obligations which the parties could not have anticipated.

Delta Star

Delta Star is a term often used in electrical engineering to refer to a method of connecting three-phase transformers or motors, involving a delta configuration and a star (wye) configuration.

Buyer's Right

Rights legally entitled to the purchaser of goods or services, including the rights to receive information, to a fair contract, and to complain and seek redress.

Rejecting Delivery

The action of refusing to accept delivery of goods or services, typically due to non-compliance with terms of contract.