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Assume the same employees perform the purchasing and receiving activities, and these employees provide practical capacity of

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Answer #1

A)

Capacity cost rate per hour

= Total cost / Total capacity

= 86,000/6,000

=$14.33

B)

Purchasing Activity rate = Hours*Cost per hour

= 8*14.33

=$114.64

Delivery activity rate

= 15*14.33

= $214.95

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