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Calculate activity rates The AbovePar Home Builders Company has estimated the following overhead costs: They have identified the following cost drivers: Activity Inspections Purchasing Supervision
Calculate activity rates
The AbovePar Home Builders Company has estimated the following overhead costs:
They have identified the following cost drivers:
Activity
Inspections
Purchasing
Supervision
Material delivery and handling
Processing change orders
Cost Driver
Number of inspections
Number of purchase orders
Hours of supervisor time
Number of deliveries
Number of change orders
Based on the estimated amount of cost driver for each activity, calculate the estimated
overhead rate for each activity.
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