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Required information Skip to question [The following information applies to the questions displayed below.] Rusties Company recently implemented an activity-based costing system. At the beginning

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[The following information applies to the questions displayed below.]

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 $ 21,840 1,820 DLHs
Purchase orders Number of orders $ 980 490 orders
Product testing Number of tests $ 5,330 410 tests
Template etching Number of templates $ 2,040 85 templates
General factory Machine-hours $ 57,000 11,400 MHs

Required:

1. Compute the activity rate for each of the activity cost pools.

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