Quiz 4

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Rusties 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 companys five activity cost pools:

Activity Cost Pool Activity Measure Expected Overhead Cost Expected Activity Labor-related Direct labor-hours $ 19,120 2,390 DLHs Purchase orders Number of orders $ 1,575 525 orders Product testing Number of tests $ 2,430 270 tests Template etching Number of templates $ 800 40 templates General factory Machine-hours $ 46,500 7,750 MHs Required: 1. Compute the activity rate for each of the activity cost pools.