Calculate the activity rate for each of the cost pools

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Gosling Company is about to implement activity based costing and would like some assistance with calculating rates and applying overhead. The company has provided the following information on cost pools.

Activity                                     Overhead Cost                   Allocation Base                  Expected Activity

Design                                    $200,000                           Design Hours                      2,000

Materials Handling                        $150,000                           Materials Requisitions         12,500

Production                                        $350,000                       Machine Hours                 70,000

Purchasing                                      $300,000                       Purchase Orders                12,000

Problem 1: Calculate the activity rate for each of the cost pools.

Reference no: EM132563658

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