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

Question

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

Quizplus · Accepted Answer

The Answer of 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

Compton Corporation the Following Overhead Cost Information Is Available for Compton