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A company's total expected overhead for the year is $500,000. 'i'wo activity cost pools have been identified: Customer Service with a total cost of $200,000

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A company's total expected overhead for the year is $500,000. 'i'wo activity cost pools have been identified: Customer Service with a total cost of $200,000 and a total activity of 25,000 customer service calls; and Product Development with a total cost of $300,000 and total activity of 20,000 development hours. Using activitybased costing, calculate the appropriate activity rates. ' $8 per customer call and $15 per development hour 0 $200,000 2' 25,000 customer service calls = $8 per customer call 0 $300000 f 20.000 development hours = $15 oer development hour

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