Question
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
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 Providing utilities Cost Driver Purchase orders Expected Cost $120,400 31,000 61,160 Square feet Square feet Expected Usage of Cost Driver 4,300 purchase orders: 4,800 square feet 4,800 square feet Compute activity rates for each of the cost pools. (Round your answers to 2 decimal places.) Activity cost pool Expected Costs Expected Amount of Cost Driver Activity Overhead Rate Purchasing Factory 4,300 4,800 per purchase order per square foot
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