Compute the activity rate for each of the activity cost pool

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Reference no: EM13327250

An intern suggested that the company use activity-based costing to cost its products. A team was formed to investigate this idea. It came back with the recommendation that four activity cost pools be used. These cost pools and their associated activities are listed as follows:

Estimated Overhead Cost Expected Activity Activity Cost Pool and Activity MeasureFlexibleRigidTotal Purchase orders (number of orders) $22,000 400 800 1,200 Rework requests (number of requests) 10,000 300 600 900 Product testing (number of tests) 207,000 4,000 11,000 15,000 Machine-related (machine hours) 328,000 20,000 30,000 50,000 $567,000

Compute the activity rate for each of the activity cost pools. (Round your answers to 2 decimal places.)

Activity Cost PoolActivity Rate Purchase orders$ per order Rework requests$ per request Product testing$ per test Machine-related$ per MH

Reference no: EM13327250

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