Figure 5 - 8

Multiple Choice

Figure 5 - 8
Lamour Corporation is a job order costing company that uses activity-based costing to apply overhead to jobs. The following overhead activities were budgeted for the year.
The following information about the jobs was given for April.
By April 30, Jobs 102 and 103 were completed and sold. The remaining jobs were still in process.
-Refer to Figure 5-8. What is the activity rate for purchasing?

A) $ 1.25
B) $ 8
C) $ 3.75
D) $ 40