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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