Question 1: Otis Corporation is a diversified manufacturer of consumer goods. The company's activity based costing system has the following six activity cost pools: Activity Cost Pool Estimated OH Cost Expected activity Labor related $50,000 10,000 direct labor hours Machine related $65,000 30,000 machine hours Machine setups $70,000 600 setups Production orders $60,000 4,000 orders Product testing $80,000 1,800 tests Packaging $90,000 4,500 packages Compute the activity rate for each activity cost pool. [3 Marks]