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A manufacturer uses activity-based costing to assign overhead costs to products. Budgeted cost information for selected activities for next year follows. Activity Purchasing Cleaning
A manufacturer uses activity-based costing to assign overhead costs to products. Budgeted cost information for selected activities for next year follows. Activity Purchasing Cleaning factory Expected Cost $70,000 27,000 Cost Driver Purchase orders Square feet 46,600 Square feet Expected Usage of Cost Driver 3,500 purchase orders 4,000 square feet 4,000 square feet Providing utilities Compute activity rates for each of the cost pools. (Round your answers to 2 decimal places.) Expected Activity cost pool Expected Costs Amount of Cost Driver Activity Overhead Rate Purchasing 3,500 per purchase order Factory 4,000 per square foot
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