Durban Metal Products, Ltd., of the Republic of South Africa makes specialty metal parts used in applications ranging from the cutting edges of bulldozer blades to replacement parts for Land Rovers. The company uses an activity-based costing system for internal decision-making purposes. The company has four activity cost pools as listed below:

Activity Cost Pool ABC Cost Order size Customer orders Product testing Selling Total overhead costActivity Cost Pool Activity Measure Activity Rate Order size Number of direct labor-hours 17.00 per direct labor-hour Customer orders Number of customer orders 366.00 per customer order Product testing Number of testing hours 79.00 per testing hour Selling Number of sales calls $ 1, 497 .00 per sales call