The Inground Sprinkler Supply sells sprinkler systems suited for large or small yards. Last year the...

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The Inground Sprinkler Supply sells sprinkler systems suited for large or small yards. Last year the company incurred K1,000,000 in overhead costs related to the following activities: Activity Cost Allocation Base Overhead Purchasing Number of purchase orders K350,000 Material handling number of shipments received K200,000 Quality inspection number of inspections 450,000 The activities for large and small yard systems were as follows: Large Small purchase orders 15,000 20,000 shipments received 7,500 12,500 inspections 11,500 11,000 If a customer requested a bid on a specially designed sprinkler that would probably require four inspections, how much quality inspection overhead would you include in the bid? The Inground Sprinkler Supply sells sprinkler systems suited for large or small yards. Last year the company incurred K1,000,000 in overhead costs related to the following activities: Activity Cost Allocation Base Overhead Purchasing Number of purchase orders K350,000 Material handling number of shipments received K200,000 Quality inspection number of inspections 450,000 The activities for large and small yard systems were as follows: Large Small purchase orders 15,000 20,000 shipments received 7,500 12,500 inspections 11,500 11,000 If a customer requested a bid on a specially designed sprinkler that would probably require four inspections, how much quality inspection overhead would you include in the bid?

Answer rating: 100% (QA)

ANSWER First of all let us calculate the allocation ... View the full answer