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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 Expected Cost Cost
A manufacturer uses activity-based costing to assign overhead costs to products. Budgeted cost information for selected activities for next year follows.
Activity | Expected Cost | Cost Driver | Expected Usage of Cost Driver | |||
Purchasing | $ | 150,400 | Purchase orders | 4,700 | purchase orders | |
Cleaning factory | 33,000 | Square feet | 5,200 | square feet | ||
Providing utilities | 68,920 | Square feet | 5,200 | square feet |
Compute activity rates for each of the cost pools. (Round your answers to 2 decimal places.) Activity cost pool Expected Costs Activity Overhead Rate Expected Amount of Cost Driver 4,700 5,200 Purchasing Factory per purchase order per square foot
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