Kramer Corporation is a diversified manufacturer of consumer goods. The company's activity-based costing system has the following seven activity cost pools:

Required:
1. Compute the activity rate for each activity cost pool.
2. Compute the company's predetermined overhead rate, assuming that the company uses a single plantwide predetermined overhead rate based on direct labor-hours.

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Activity Cost Pool Estimated Overhead Cost Expected Activity 20,000 direct labor-hours 45,000 machine-hours 600 setups 400 orders Labor related Machine related $48,000 $67,500 Machine setups $84,000 Production orders $112,000 Product testing $58,500 Packaging $90,000 6,000 packages General factory $672,000 20,000 direct labor-hours 900 tests