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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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Skip to question
[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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