Lenoir Company manufactures two products28,000 units of Product D and 12,000 units of Product R. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products D and R:

Activity Cost Pool Activity Measure Estimated

Overhead Cost Expected Activity

Machining. . . . . . . . . . . . . Machine-hours $400,000 20,000 MHs

Machine setups . . . . . . . . . . Number of setups $200,000 400 setups

Product design . . . . . . . . . . Number of products $168,000 2 products

General factory. . . . . . . . . . Direct labor-hours $600,000 24,000 DLHs

Activity Measure Product D Product R

Machine-hours. . . . . . . . . . . . . . . 14,000 6,000

Number of setups . . . . . . . . . . . . . 100 300

Number of products . . . . . . . . . . . . 1 1

Direct labor-hours . . . . . . . . . . . . 16,000 8,000

Required:

What is the activity rate for the Machining activity cost pool?

What is the activity rate for the Machine Setups activity cost pool?

What is the activity rate for the Product Design activity cost pool?

What is the activity rate for the General Factory activity cost pool?

What is the total overhead assigned to Products D and R under the ABC system?

Please provide step by step instructions