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Pharoah Manufacturing Company has supported a research and development ( R &D ) department that has for many years been the sole contributor to
Pharoah Manufacturing Company has supported a research and development R&D department that has for many years been the sole contributor to the company's new farm machinery products. The R&D activity is an overhead cost center that performs services only to inhouse manufacturing departments four different product lines all of which produce agriculturalfarmranchrelated machinery products. The department has never sold its services to outside companies. But, because of its long history of success, larger manufacturers of agricultural products have approached Pharoah to hire its R&D department for special projects. Because the costs of operating the RD department have been spiraling uncontrollably, Pharoah's management is considering entertaining these outside approaches to absorb the increasing costs. However, management doesn't have any cost basis for charging R&D services to outsiders, and it needs to gain control of its R&D costs. Management decides to implement an activitybased costing system in order to determine the charges for both outsiders and inhouse users of the department's services. R&D activitiestall into four pools with the following annual costs.Compute the activitybased overhead rate for each activity cost pool.b The parts of this question must be completed in order. This part will be avallable when you complete the part above c Then faarts of this question must bet completed in ocder. Thin part will be avaitabio when you coinptete the part abeve
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