1. 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		$145,410		Number of purchase orders
   Scheduling		10,560		Number of production orders
   Materials handling		28,400		Number of moves
   Product development		33,360		Number of engineering changes
   Total cost		$217,730

   The estimated activity-base usage and unit information for two product lines was determined as follows:

   		Number of Purchase Orders			Number of Production Orders			Number of Moves			Number of Engineering Change Orders			Units
   Ovens			540			290			420			170			1,420
   Refrigerators			570			150			290			70			1,080
   	Totals		1,110			440			710			240			2,500

   a. Determine the activity rate for each activity cost pool. If required, round your answers to the nearest dollar.

   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 your answers to the nearest cent.

   Ovens	$ per unit
   Refrigerators	$ per unit