The Following Overhead Cost Information Is Available for Henderson Inc

question 69

Multiple Choice

The following overhead cost information is available for Henderson Inc.for 2006:
$\begin{array}{llc}\text { Activity } & \text { Allocation Base } & \text { Overhead Cost } \\\hline \text { Purchasing } & \text { Number of purchase orders } & \$ 40000 \\\text { Receiving } & \text { Number of shipments received } & 25000 \\\text { Machine setups } & \text { Number of setups } & 30000 \\\text { Ouality control } & \text { Number of inspections } & 20000\end{array}$
During the year,2000 purchase orders were issued;800 shipments were received;3000 machine setups were performed;and 2500 inspections were conducted.
If Job #101 required 3 purchase orders,4 shipments,4 machine setups,and 2 inspections to complete,how much overhead should be assigned to Job #101?

• A) $241.00
• B) $ 69.25
• C) $180.18
• D) $ 13.86

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