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Currently trying to figure this out. I have an idea where to start but am not too sure. Active Works Products is a global manufacturing

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Currently trying to figure this out. I have an idea where to start but am not too sure.

image text in transcribed
Active Works Products is a global manufacturing company specializing in athletic wear and sporting goods. The company decided to adapt an activity based costing system which has ve activity cost pools: Labor-related 2,000 direct labor hours (DLH) Purchase orders 600 orders Product testing 800 tests Packaging 3800 packages General Factory 2,000 direct labor hours (DLH) You have been asked to compute the following: 1. Activity rate for each activity cost pool 2. Predetermined overhead rate using the assumption that the company uses a single predetermined overhead rate based on direct labor hours. 3. Write a brief memo to the production supervisor explaining the signicance of using direct labor hours as the base for assigning manufacturing overhead costs to products. Part 1: Activity Rate (round your answers to 2 decimal places) Labor-related direct labor hours (DLH) Purchase orders orders Product testing tests Packaging packages General Factory direct labor hours (DLH) Totals Part 2: Predetermined Overhead Rate (round your answers to 2 decimal places) Estimated total manufacturing overhead Estimated total amount of the allocation base Predetermined overhead rate per direct labor hour Part 3: Memo to Production Supervisor

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