Compute the activity rate for each of the activity cost pool

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Reference no: EM13509082

Adria Company recently implemented an activity-based costing system. At the beginning of the year, management made the following estimates of cost and activity in the companys five activity cost pools:


Activity Cost Pool

Activity
Measure

Expected
Overhead Cost

Expected
Activity

Labor-related

Direct labor-hours

$

171,500

35,000

DLHs

Purchase orders

Number of orders

$

67,500

900

orders

Material receipts

Number of receipts

$

159,320

1,400

receipts

Relay assembly

Number of relays

$

303,450

10,500

relays

General factory

Machine-hours

$

812,000

70,000

MHs


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


Activity Cost Pool Activity Rate
Labor-related $ per DLH
Purchase orders $ per order
Material receipts $ per receipt
Relay assembly $ per relay
General factory $ per MH


2. The expected activity for the year was distributed among the company's four products as follows:

Using the ABC data, determine the total amount of overhead cost assigned to each product. (Do not round intermediate calculations. Round your answers to the nearest dollar amount.)

Product A $
Product B $
Product C $
Product D $

Reference no: EM13509082

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