Blossom Company uses three activity pools to apply overhead to its products. Each activity has a cost driver used to assign the overhead costs to the product. The activities and related overhead costs are as follows: product design $$48,000$; machining $$360,250$; and material handling $$119,970.$ The cost drivers and estimated use are as follows.

Activity Cost

Pools

Activities

Estimated Use of

Cost Drivers

per Activity

Product design

Number of product changes

$10$

Machining

Machine hours

$131,000$

Material handling

Number of set$-$ups

$86$

$($a$)$

Your answer is correct.

Calculate the predetermined overhead rate for each activity. $($Round overhead rate for machining activity to $2$ decimal places, e$.$g$.15\mathrm{.}25.)$

Activity

Overhead Rate

Product design

$enter a dollar amount per product change

$4800$

Correct answer

per product change

Machining

$enter a dollar amount per machine hour rounded to $2$ decimal places

$2\mathrm{.}75$

Correct answer

per machine hr$.$

Material handling

$enter a dollar amount per set$-$up

$1395$

Correct answer

per set$-$up

eTextbook and Media

Attempts: $1$ of $2$ used

$($b$)$

Classify each of these activities as unit$-$level, batch$-$level, product$-$level, or facility$-$level.

Product design

select a type of activity

Machining

select a type of activity

Material handling

select a type of activity