Question 4 Beef Max Company sells umbrellas that cover small and large barbecues. Based on the advice of its accountant, Beef Max is considering whether to adopt an activity-based costing system. To evaluate the possible impact on cost, the company has accumulated the following data from last year. Activity Purchasing Receiving Sales Allocation base Number of purchase orders Number of shipments received Number of sales orders Overhead cost $400,000 $300,000 $200,000 The number of activities for the small and large barbecue covers is as follows: Small Large 500 Number of purchase orders Number of shipments received Number of sales orders 1,500 3,500 3,500 1,500 2,500 a. Required Calculate the overhead rate for purchasing, receiving and sales. b. Calculate the dollar amount of total overhead that should be assigned to small and large barbecue covers for each of the three activities