The Drapery Company sells draperies suited for large or small windows and hasdecided to adopt an activity-based costing system. Last year the company incurred$800000 in overhead costs related to the following activities:Activity Allocation Base Overhead CostPurchasing # of purchase orders $300000Receiving # of shipments received $200000Sales # of sales orders $300000The activities for large and small window draperies were as follows:Large SmallPurchase orders 5000 10000Shipments received 7500 12500Sales orders 6500 850020. What is the overhead rate for sales?A. $60 B. $30 C. $20D. $1021. How much of the receiving overhead should be assigned to the large draperies?A. $75000 B. $100000 C. $125000D. $20000022. If a customer requested a bid on a specially designed drapery that would require fivepurchase orders how much purchasing overhead would you include in the bid?A. $25 B. $50 C. $100D. $12523. Cost of goods manufactured equalsA. beginning direct materials inventory plus all production costs incurred less ending direct materials inventory.B. beginning direct materials inventory plus all production costs incurred less ending work-in-process inventory.C. beginning work-in-process inventory plus direct materials used plus direct labor used plus manufacturing overhead used less ending work-in-process inventory.D. beginning work-in-process inventory plus direct materials used plus direct labor used plus manufacturing overhead used plus beginning finished goods inventory.24. If a company is in the process of implementing an activity-based costing systemwhich cost driver would a purchasing department manager identify to allocate costs?A. Amount of material B. Number of receipts C. Amount of labor hours D. Number of parts25. When considering housing options if the cost of a dorm room and the cost of anapartment across the street are the same then cost isA. sunk.B. an opportunity cost. C. relevant D. not relevant.