Exercise 9.11 (page 266): Anderson has identified the following operating activities for its company, the estimated overhead cost associated with each activity, an appropriate cost driver for each activity, and the estimated usage of the cost driver for the coming period. Using this information, determine the appropriate overhead rates.

Activity Costs Cost Driver Est. Usage

Occupying facilities $800,000 Square feet 100,000

Testing quality $50,000 Production Runs 100

Carrying inventory $125,000 Pounds of Material 1,500

Setting up machines $60,000 Production Runs 100

Packing containers $400,000 Units Made 200,000

Using Machines $200,000 Machine hours 100,000