Problem

Computing Activity Rates, Classifying ActivitiesFrancis Company uses three activity pools....

Computing Activity Rates, Classifying Activities

Francis Company uses three activity pools. Each pool has a cost driver where information follows:

Activity Pool and Amount

Cost Driver

Estimated Total of Cost Driver

Machining $250,000

Number of machine hours

80,000

Designing costs $65,000

Number of design hours

8,000

Setup costs $73,000

Number of batches

400

Required:

1.Compute the activity rate for each activity. Round to three decimal places.


2. Classify each activity as facility, product, customer, batch, or unit level.

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