Question

Check my work Required information [The following information applies to the questions displayed below.] Rusties 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 company's five activity cost pools: Activity Cost Pool Labor-related Purchase orders Product testing Template etching General factory Activity Measure Direct labor-hours Number of orders Number of tests Number of templates Machine-hours Expected Overhead Cost $ 28,050 $ 2,100 $ 4,420 $ 1,250 $81,600 Expected Activity 1,870 DLHS 420 orders 260 tests 50 templates 10,200 MHs Required: 1. Compute the activity rate for each of the activity cost pools. Activity Cost Pool Labor-related Purchase orders Product testing Template etching General factory Activity Rate per DLH per order per test per template per MH

Answer 1

1. :) Labour Related a Overhead cost Direct labows his > $28010 1870 DLH'S $15 pese dieech labour how ) Purchase Order 2 Overheed cours No. ordleu » $ 2100 420 onders $5 per order ii) Product Telinga Overheed cost $ 4420 200 Heah $17 per key iv) Overheed Templak etching? Coat No of remplates - 11250 2 50 kompleks $25 per tereomplete 1) Hom General factory overhead (out o Non Machine how) 81600 TO 200 MHS 8 8 Per My