Refer to the information about Rawlings Corp. presented in E4-7. Rawlings has identified the following detailed information about its cost pools and cost drivers.

Required:

1. Calculate Rawlings’ activity rate for each cost pool.

2. Determine the amount of overhead assigned to Rawlings’ products if they have the following requirements:

Data from E4-7

Rawlings Corp. has two product lines, A and B. Rawlings has identified the following information about its overhead and potential cost drivers.

Cost pools Material handling Machine maintenance Cost drivers Number of material moves Number of machine hours $60,000 $15,000 500 46,000