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Adria Company recently implemented an activity-based costing system. At the beginning of the year management made the following estimates of cost and activity In the
Adria Company recently implemented an activity-based costing system. At the beginning of the year management made the following estimates of cost and activity In the company's five activity cost pools: Activity Measure Expected Overhead Cost Expected Activity Activity Cost Pool Labor-related Purchase orders Materlal recelpts Relay assembly General factony Direct labor-hours 48,000 8,000 DLHs Number of orders $6,900 2,300 orders Number of recelpts11,400 Number of relays Machine-hours 950 recelpts $11,700 300 relays $ 328,000 41,000 MHs value 10.00 points Required 1. Compute the activity rate for each of the activity cost pools Activity Cost Pool Labor-related Purchase orders Material receipts Relay assembly General factory Activity Rate per DLH per order per receipt per relay per MH
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