Question
The following overhead cost information is available for Basanets Corporation for 2019: Activity Allocation Base Overhead Cost Purchasing Number of purchase orders $100,000 Receiving Number
The following overhead cost information is available for Basanets Corporation for 2019: Activity Allocation Base Overhead Cost Purchasing Number of purchase orders $100,000
Receiving Number of shipments received 60,000
Machine setups Number of setups 150,000
Quality control Number of inspections 50,000
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.
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?
d) What is the overhead rate for the quality control activity?
e) If Job #229 required 5 purchase orders, 10 shipments, 6 machine setups, and 4 inspections to fill, how much overhead should be assigned to Job #229?
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