1. Maxx Inc. has provided the following data from its activity-based costing system:

Activity Cost Pools Total Cost Total Activity

Designing products $ 386,700 6,400 product design hours

Setting up batches $ 52,678 7,366 batch set-ups

Assembling products $ 25,122 4,018 assembly hours

The activity rate for the "designing products" cost pool is:

2. Sasha Company allocates the estimated $190,500 of its accounting department costs to its production and sales departments since the accounting department supports the other two departments particularly with regard to payroll and accounts payable functions. The costs will be allocated based on the number of employees using the direct method. Information regarding costs and employees follows:

Department Employees

Accounting 4

Production 40

Sales 13

How much of the accounting department costs will be allocated to the production?

3.The Manassas Company has 55 obsolete keyboards that are carried in inventory at a cost of $9,600. If these keyboards are upgraded at a cost of $6,800, they could be sold for $18,300. Alternatively, the keyboards could be sold "as is" for $7,700. What is the net advantage or disadvantage of re-working the keyboards?