Activity Rates Patten Company uses activity-based costing (ABC). Patten manufactures toy cars using two activities: plastic injection molding and decal application Patten's 20x1 total budgeted overhead costs for these two activities are $451,000 (70% for injection molding and 30% for decal application). Molding overhead costs are driven by the number of pounds of plastic that are molded together. Decal application overhead costs are driven by the number of decals applied to toys. The budgeted activity data for 20x1 are as follows: Pounds of plastic molded 2,060,000 Number of decals applied 234,000 Required: 1. Calculate the activity rate for the plastic injection molding activity. Round your answer to the nearest cent. per pound molded 2. Calculate the activity rate for the decal application activity. Round your answer to the nearest cent. per decal applied Assigning Costs to Activities, Resource Drivers The Receiving Department has three activities: unloading, counting goods, and inspecting, Unloading uses a forklift that is leased for $19,000 per year. The forklift is used only for unloading. The fuel for the forklift is $5,400 per year. Other operating costs (maintenance) for the forklift total $2,750 per year. Inspection uses some special testing equipment that has depreciation of $1,750 per year and an operating cost of $2,000. Receiving has three employees who have an average salary of $55,000 per year. The work distribution matrix for the receiving personnel is as follows: Percentage of Time on Activity Each Activity Unloading 40% Counting 25% Inspecting 35% No other resources are used for these activities. Required: 1. Calculate the cost of each activity, Unloading Counting Inspecting 2. Explain the two methods used to assign costs to activities. is possible. When the activities are shared, as in the case of labor, then When the resource is used only by one activity, then must be used