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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 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 Expected Cost $81,400 28,000 50, 120 Cost Driver Purchase orders Square feet Square feet Expected Usage of Cost Driver 3,700 purchase orders 4,200 square feet 4,200 square feet Compute activity rates for each of the cost pools. (Round your answers to 2 decimal places.) Activity cost pool Answer is complete but not entirely correct. Expected Expected Amount of Costs Cost Activity Overhead Rate Driver $ 81,400 3,700 $ 22.00 per purchase order $ 28,000 X 4,200 $ 6.67 X per square foot Purchasing Factory
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