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2 A manufacturer uses activity-based costing to assign overhead costs to products Budgeted cost information for selected activities for next year follows. Activity 2
2 A manufacturer uses activity-based costing to assign overhead costs to products Budgeted cost information for selected activities for next year follows. Activity 2 points Purchasing Cleaning factory Providing utilities Expected Cost $100,000 29,500 Cost Driver Purchase orders Square Feet $5,550 Square feet Expected Usage of Cost Driver 4,000 purchase orders 4,500 square feet 4,500 square feet Compute activity rates for each of the cost pools. (Round your answers to 2 decimal places.) Answer is complete but not entirely correct. Expected Activity cost pool Expected Amount of Cost Costs Activity Overhead Rate Driver Purchasing $ 100,000 4,000 25.00 per purchase order Factory $ 85.000 4,500 $ 18.89 per square foot
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