Compton Corporation the Following Overhead Cost Information Is Available for Compton

question 69

Multiple Choice

Compton Corporation The following overhead cost information is available for Compton Corporation for 2011:
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.
Refer to the Compton Corporation information above. What is the overhead rate for the purchasing activity?

• A) $0.05 per purchase order
• B) $20.00 per purchase order
• C) $72.00 per purchase order
• D) $3.13 per purchase order