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Ready Ride is a trucking company. It provides local, short-haul, and long-haul services. It has developed...

Ready Ride is a trucking company. It provides local, short-haul, and long-haul services. It has developed the following three cost pools.

Activity Cost Pool

Cost Drivers

Estimated
Overhead

Expected Use of
Cost Driver
per Activity

Loading and unloading Number of pieces $92,000 89,300
Travel Miles driven 437,000 583,000
Logistics Hours 80,000 2,830
Compute the activity-based overhead rates for each pool. (Round answers to 2 decimal places, e.g. 12.75.)

Activity Cost Pool

Activity-Based
Overhead Rate

Loading and unloading $

per piece
Travel $

per mile
Logistics $

per hour
0 0
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Answer #1
Ans.   Activity cost pool Estimated overhead Expected cost driver Activity Rate  
Loading and unloading $92,000 89300 $1.03 per piece
Travel $437,000 583000 $0.75 per mile
Logistics $80,000 2830 $28.27 per hour
*Activity rate   =    Estimated overhead / Expected use of cost driver per activity
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