Answer:
Overhead rate for ordering and receiving = $300 per order.
Explanation:
Given Activity costs and activity drivers
Activity                                          Overhead Cost            Driver Activity
Ordering & Receiving Order           $150,000                     500 orders
Machine Setup                                  $324,000                    450 setups
Machining                                          $1,587,500                   125,000 MH
Assembly Parts                                 $1,260,000                   1,000,000 parts
Inspection                                           $330,000                        500 inspections
Under activity based costing the rates are based on the nature of activity and the rates are based on number of those activities per driver. As for ordering and receiving there are total of 500 orders and total cost = $150,000 that is cost per order will be computed.
Overhead rate for ordering and receiving = $150,000/500 orders = $300 per order.