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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