2. An intern suggested that the company use activity-based costing to cost its products. A team was formed to investigate this idea, and it came back with the recommendation that four activity cost pools be used. These cost pools and their associated activities follow: Activity Cost Pool and Activity Measure Purchase orders (number of orders) Rework requests (number of requests) Product testing (number of tests) Machine related (machine-hours) Activity Cost Pool Purchase orders Rework requests Product testing Machine related Activity Rate per order per request per test per MH Estimated Overhead Cost 172,200 266,400 262,500 600,000 $1,301, 100 $ Deluxe 800 400 5,000 10,000 Compute the activity rate (i.e., predetermined overhead rate) for each of the activity cost pools. Activity Regular 1,300 800 12,500 20,000 Total 2,100 1,200 17,500 30,000

2. An intern suggested that the company use activity based costing to cost its products. A team was formed to investigate thisidea, and it came back with the recommendition that four activity cost pools be used. These cost pools and their associated activeles follow: Compute the activily rote (i.e., predetermined ovethead rate) for each of the activity cost pooks