Fields Company is a manufacturing firm that currently uses traditional costing with one plantwide overhead rate. The company is determining if they should implement activity-based costing and has identified the potential activity areas along with the expected activity for its' two product lines: Product A and Product B.

			Expected Activity
Activity	Overhead Cost	Allocation Base	Product A	Product B
Design	$350,000	Design Hours	5,000	2,000
Production	$800,000	Machine Hours	10,000	30,000
Finishing	$300,000	Labor Hours	1,000	3,000
Required:
Calculate the activity rate for each of the cost pools. (2 marks for each activity rate)