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Jerash Manufacturing Company has presented the following budgeted costs information for the year 2020 regarding Product A: (FISRT PICTURE ) Prior to 2019, the company

Jerash Manufacturing Company has presented the following budgeted costs information for the year 2020 regarding Product A: (FISRT PICTURE )

Prior to 2019, the company has relied on traditional allocation base using only labor hours as a predetermined manufacturing overhead rate. Sensing that this system was distorting manufacturing overhead costs. In 2020, the company has decided to switch to an activity-based costing system using four activity cost pools to allocate manufacturing overhead costs. Information on these activity cost pools are as follows: (SECOND PICTURE )

Required:

1.Determine the activity rates for overhead costs the company should use in 2020.

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Direct materials costs Direct labor costs Manufacturing overhead costs Administrative and selling overhead costs Production JOD 840,000 JOD 200,000 JOD 610,000 JOD 300,000 600,000 units

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