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Please answer the following questions below Problem 4-18 Contrasting Activity-Based Costing and Conventional Product Costing (L04-2, LO4-3, LO4- 4] [The following information applies to the
Please answer the following questions below
Problem 4-18 Contrasting Activity-Based Costing and Conventional Product Costing (L04-2, LO4-3, LO4- 4] [The following information applies to the questions displayed below.] Adria Company recently implemented an activity-based costing system. At the beginning of the year, management made the following estimates of cost and activity in the company's five activity cost pools: Activity Cost Pool Labor-related Purchase orders Material receipts Relay assembly General factory Activity Measure Direct labor-hours Number of orders Number of receipts Number of relays Machine-hours Expected Overhead Cost $ 30,000 $ 7,500 $ 8,000 $ 7,500 $164,000 Expected Activity 7,500 DLHs 2,500 orders 800 receipts 1,500 relays 41,000 MHs Required: 1. Compute the activity rate for each of the activity cost pools. Activity Cost Pool Labor-related Purchase orders Material receipts Relay assembly General factory Activity Rate per DLH per order per receipt per relay per MHStep by Step Solution
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