2. An intern suggested that the company use activity-based costing to cost its products. A team was formed to investigate this idea. It came back with the recommendation that four activity cost pools be used. These cost pools and their associated activities are listed as follows: Expected Activity Estimated Activity Cost Pool and Activity Measure Overhead Flexible Rigid Total Cost 145 455 600 65 335 400 Purchase orders (number of orders) 30,000 Rework requests (number of requests) 20,000 150,000 Product testing (number of tests) 590 910 1,500 Machine related (machine-hours) 312,000 1.200 2,700 3.900 $512,000 Compute the activity rate for each of the activity cost pools Activity Cost Pool Activity Rate Purchase orders 50 per order Rework requests 50 per request Product testing 100 per test I$ Machine-related 80 per MH 3. Using activity-based costing, do the following: a. Determine the total amount of overhead that would be assigned to each model for the year. Total amount of overhead Flexible Rigid