Problem 4-16 Part 2

2. Management is considering using activity-based costing to assign manufacturing overhead cost to products. The activity-based costing system would have the following four activity cost pools:

Activity Cost Pool	Activity Measure	Estimated Overhead Cost
Maintaining parts inventory	Number of part types	$	225,000
Processing purchase orders	Number of purchase orders		182,000
Quality control	Number of tests run		45,000
Machine-related	Machine-hours		460,000
		$	912,000

	Expected Activity
Activity Measure	LEC 40	LEC 90	Total
Number of part types	600	900	1,500
Number of purchase orders	2,000	800	2,800
Number of tests run	500	1,750	2,250
Machine-hours	1,600	8,400	10,000

Determine the activity rate for each of the four activity cost pools.