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The following overhead cost information is available for Millennium Inc. for 2012: Activity Allocation Base Overhead Cost Purchasing Number of purchase order $450,000 Machine setups
The following overhead cost information is available for Millennium Inc. for 2012: Activity Allocation Base Overhead Cost Purchasing Number of purchase order $450,000 Machine setups Number of setups 180,000 Quality control Number of inspections 90,000 During the year, 7,500 purchase orders were issued; 18,000 machine setups were performed; and 3,000 inspections were conducted. Required: A. Calculate the overhead rates for each of the three activities. Purchasing: $ per purchase order Machine setups: $ per setup Quality control: $ per inspection B. If a particular job requires 16 purchase orders, 8 setups, and 10 inspections to fill, how much overhead should be applied to the job? $
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