The following overhead cost information is available for Millennium Inc. for 201
ID: 2367708 • Letter: T
Question
The following overhead cost information is available for Millennium Inc. for 2012: Activity Purchasing Machine setups Quality control Allocation Base number of purchase orders number of setups number of inspections Overhead cost $450,000 180,000 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? machine setups? quality control? 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?Explanation / Answer
The following overhead cost information is available for Millennium Inc. for 2012: Activity Purchasing Machine setups Quality control Allocation Base number of purchase orders number of setups number of inspections Overhead cost $450,000 180,000 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? machine setups? quality control? 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?
REFER TO:
https://www.surrey.ca/files/FinancialPlan20082012.pdf
www.naperville.il.us/emplibrary/FY08AOB.pdf
https://docs.google.com/viewer?a=v&q=cache:cBYzhTBDuqsJ:cengagesites.com/academic/assets/sites/4004/acct_managerial_enrichment_module_complete (2).pdf+&hl=en&gl=in&pid=bl&srcid=ADGEESj_EORjo8vAsaGo5S3ticm_tzqsH0ZF4HCBJx5ipqtd8gEIID4F1QQ0oR3cvnRsKpw5DNoGz2JP5yPbeyQKJxk7rxWl9WQ5uOusjKj9JqR1Kek5Qlf7FRA-h5RJ7qHcJeSHuOvu&sig=AHIEtbTaeBk5UK9QOupoW5rhBJ2i_uQKUg
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