managerial accounting volume 2

muous management to make frivolous decisions. c. It often causes managers to argue about the best activity meas d. It is expensive. The following overhead cost information is available for Compton Corp Activity Purchasing Receiving Machine setups Quality control Allocation Base Allocation Number of purchase orders Number of shipments received Number of setups Number of inspections Overhead $ 80,000 60,000 150.000 48.000 During the year, 4,000 purchase orders were issued: 30,000 shipments were receis machine setups were performed; and 3.000 inspections were conducted. a) What is the overhead rate for the purchasing activity? b) What is the overhead rate for the receiving activity? c) What is the overhead rate for the machine setups? ) What is the overhead rate for the quality control activity muous management to make frivolous decisions. c. It often causes managers to argue about the best activity meas d. It is expensive. The following overhead cost information is available for Compton Corp Activity Purchasing Receiving Machine setups Quality control Allocation Base Allocation Number of purchase orders Number of shipments received Number of setups Number of inspections Overhead $ 80,000 60,000 150.000 48.000 During the year, 4,000 purchase orders were issued: 30,000 shipments were receis machine setups were performed; and 3.000 inspections were conducted. a) What is the overhead rate for the purchasing activity? b) What is the overhead rate for the receiving activity? c) What is the overhead rate for the machine setups? ) What is the overhead rate for the quality control activity