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Required information Problem 4-18 Contrasting Activity-Based Costing and Conventional Product Costing [LO4-2, LO4-3, LO4- 4] [The following information applies to the questions displayed below. Adria
Required information Problem 4-18 Contrasting Activity-Based Costing and Conventional Product Costing [LO4-2, 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 Expected Overhead Cost 42,500 $ 5,600 10,000 $ 14,400 Activity Measure Expected Activity Cost Pool Labor-related Purchase orders Material receipts Relay assembl,y General factory Direct labor-hours Number of orders Number of receipts Number of relays Machine-hours Activity 8,500 DLHs 2,800 orders 1,000 receipts 1,800 relays $245,000 35,000 MHs Problem 4-18 Part 1 Required . 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 MH
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