The Following Overhead Cost Information Is Available for Millennium Inc

question 59

Essay

The following overhead cost information is available for Millennium Inc.for 2009:
$\begin{array}{llc}\text { Activity } & \text { Allocation Base } & \text { Overhead Cost } \\\hline \text { Purchasing } & \text { Number of purchase orders } & \$ 300000 \\\text { Machine setups } & \text { Number of setups } & 150000 \\\text { Ouality control } & \text { Number of inspections } & 50000\end{array}$
During the year,4000 purchase orders were issued;8000 machine setups were performed;and 2000 inspections were conducted.
Required:
A. Calculate the dverhead rates for each of the three actrytaes.

B. If a particular job requures 10 purchase orders, 6 setups, and 5 inspections to fill, how much cverhead should be agplied to the job?

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Definitions:

Phosphate Group

A chemical group consisting of a phosphorus atom bound to four oxygen atoms, important in energy transfer and molecular structure in biological systems.

Hydrocarbon Side

Refers to the nonpolar, hydrophobic part of a molecule that consists of just hydrogen and carbon, commonly found in organic compounds and influencing their chemical behavior.

Photosynthesis

The process by which green plants and some other organisms use sunlight to synthesize foods from carbon dioxide and water, producing oxygen as a byproduct.

Chlorophyll

A group of light-trapping green pigments found in most photosynthetic organisms.