Homework Answers
Computation of Activity rate
| Activity cost pool | Activity Cost | Activity units | Activity rate |
| Labor related | $124,400 | 9,000 | $13.82 |
| Production order | $58,660 | 1,300 | $45.12 |
| Order size | $917,480 | 6,800 | $134.92 |
Computation of Product P4 Overhead cost
| Activity cost pool | Activity Rate | Activity units (product P4) | Activity cost |
| Labor related | $13.82 | 9,000 | $41,460 |
| Production order | $45.12 | 1,300 | $27,072 |
| Order size | $134.92 | 6,800 | $404,760 |
| Total Overhead applied to product P4 | $473,292 | ||
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