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Activity Cost Pools, Activity Rates, and Product Costs using Activity Based Costing Caldwell Home Appliances Inc. is estimating the activity cost associated with producing ovens

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Activity Cost Pools, Activity Rates, and Product Costs using Activity Based Costing Caldwell Home Appliances Inc. is estimating the activity cost associated with producing ovens and refrigerators. The Indirect labor can be traced into four separate activity pools, based on time records provided by the employees. The budgeted activity cost and activity base information are provided as follows: Activity Activity Pool Cost Activity Base Procurement Scheduling Material handing $12,600 90,000 Number of purchase orders Number of production orders Number of moves Number of engineering changes 11,000 50.000 Product development Total cost $163,600 The estimated activity-base usage and unit information for two product lines was determined as follows: Number of Purchase Orders Number of Production Orders 100 Number of Meves Number of Engineering Change Orders Units 300 30 Ovens Refrigerators Totals 400 300 700 1.000 500 200 400 120 1,200 500 200 1,500 a. Determine the activity rate for each activity cost pool Procurement (per purchase order) Scheduling (per production order) Materials handling (per move) Product development (per engineering change order) dll) Damithachacadascund that the cent Activity Activity Pool Cost Activity Base Procurement $12,600 Scheduling Materials handling Product development 90,000 11,000 Number of purchase orders Number of production orders Number of moves Number of engineering changes 50,000 Total cost $163,600 The estimated activity-base usage and unit information for two product lines was determined as follows: Number of Purchase Orders Number of Production Orders 800 Number of Moves Number of Engineering Change Orders Units Ovens 400 300 80 1,000 Refrigerators 300 400 200 120 500 Totals 700 1,200 500 200 1,500 a. Determine the activity rate for each activity cost pool. Procurement (per purchase order) Scheduling (per production order) Materials handling (per move) Product development (per engineering change order) b. Determine the activity-based cost per unit of each product. Round the per unit rates to the nearest cent. co0 Ovens per unit Refrigerators per unit

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