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I got 18.04 To find the activity rate for the procurement activity cost pool, we divide the total budgeted activity cost for procurement by the
I got 18.04 To find the activity rate for the procurement activity cost pool, we divide the total budgeted activity cost for procurement by the total number of purchase orders. Given: Budgeted activity cost for procurement: $316,300 Total number of purchase orders for all products: 3,830 + 2,400 + 11,300 = 17,5303,830+2,400+11,300=17,530 \text{Activity rate for procurement} = \frac{\text{Budgeted activity cost for procurement}}{\text{Total number of purchase orders}} Activityrateforprocurement= Totalnumberofpurchaseorders Budgetedactivitycostforprocurement \text{Activity rate for procurement} = \frac{316,300}{17,530} \approx \$18.04 \text{ per purchase order} Activityrateforprocurement= 17,530 316,300 $18.04perpurchaseorder
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