Coffee Bean Incorporated (CBI) processes and distributes high-quality coffee. CBI buys coffee beans from around the world and roasts, blends, and packages them for resale. Currently, the firm offers 2 coffees to gourmet shops in 1-pound bags. The major cost is direct materials; however, a substantial amount of factory overhead is incurred in the predominantly automated roasting and packing process. The company uses relatively little direct labor.

CBI prices its coffee at full product cost, including allocated overhead, plus a markup of 30%. If its prices are significantly higher than the market, CBI lowers its prices. The company competes primarily on the quality of its products, but customers are price conscious as well.

Data for the current budget include factory overhead of $3,042,000, which has been allocated on the basis of each products direct labor cost. The budgeted direct labor cost for the current year totals $600,000. The firm budgeted $6,000,000 for purchase and use of direct materials (mostly coffee beans).

The budgeted direct costs for 1-pound bags are as follows:

	Mona Loa	Malaysian
Direct materials	$ 4.20	$ 3.20
Direct labor	0.30	0.30

CBIs controller, Mona Clin, believes that its current product costing system could be providing misleading cost information. She has developed this analysis of the current years budgeted factory overhead costs:

Activity	Cost Driver	Budgeted Driver Consumption	Budgeted Cost
Purchasing	Purchase orders	1,188	$ 594,000
Materials handling	Setups	1,830	732,000
Quality control	Batches	750	150,000
Roasting	Roasting hours	96,400	964,000
Blending	Blending hours	33,900	339,000
Packaging	Packaging hours	26,300	263,000
Total factory overhead cost			$ 3,042,000

Data regarding the current years production for the Mona Loa and Malaysian lines follow. There is no beginning or ending direct materials inventory for either of these coffees.

	Mona Loa	Malaysian
Budgeted sales	100,000 pounds	2,000 pounds
Batch size	10,000 pounds	500 pounds
Setups	3 per batch	3 per batch
Purchase order size	25,000 pounds	500 pounds
Roasting time	1 hour per 100 pounds	1 hour per 100 pounds
Blending time	0.5 hour per 100 pounds	0.5 hour per 100 pounds
Packaging time	0.1 hour per 100 pounds	0.1 hour per 100 pounds

Coffee Bean has total practical capacity as noted in the table below, i.e. processing 1,460 purchase orders, 2,460 setups, etc. These are the levels of activity work that are sustainable.

Activity	Practical Capacity
Purchasing	1,460
Materials handling	2,460
Quality control	1,260
Roasting	100,600
Blending	36,600
Packaging	30,600

Required:

1. Determine the activity rates based on practical capacity and the cost of idle capacity for each activity. (Round "Usage %" and "Practical Capactity Rate" to 2 decimal places. For percentages .1234 = 12.34%.)

Required: 1. Determine the activity rates based on practical capacity and the cost of idle capacity for each activity. (Round "Usage \%" and "Practical Capactity Rate" to 2 decimal places. For percentages 1234=12.34%.)