Lennox suspects that her allocation of indirect costs could be giving misleading results so she decides to develop an ABC system. She identifies three?activities: documentation?preparation, information technology?support, and training.Lennox figures that documentation costs are driven by the number of?pages, information technology support costs are driven by the number of software applications?used, and training costs are most closely associated with the number of direct labour hours worked.

Estimates of the costs and quantities of the allocation bases?follow:

Data table Estimated Allocation Estimated Quantity Activity Cost Base of Cost Driver Documentation preparation $ 130,000 Pages. .. . .. 3,200 pages Information technology support . .... 158,000 Applications used . 815 applications Training. . . . ... 454,000 Direct labour hours . . ... 5,600 hours 742,000 Total indirect costs Print DoneFirst, determine the formula to compute the allocation rate in an activity-based costing system, then compute the rate. (Abbreviations: Est. = estimated, Act. = actual, qty. = quantity. Round your answers to the nearest cent.) ABC allocation rate Document. prep. /page Info. tech support application Training hour