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Required information [The following information applies to the questions displayed below.] Adria Company recently implemented an activity-based costing system. At the beginning of the year,
Required information [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: Activity Cost Pool Labor-related Purchase orders Material receipts Relay assembly General factory Expected Overhead Activity Measure Cost Direct labor- hours $ 57,000 Number of orders $ 13,500 Number of receipts $ 12,000 Number of relays $ 28,000 Machine-hours $ 252,000 Expected Activity 9,500 DLHs 4,500 orders 1,000 receipts 3,500 relays 36,000 MHs Required: 1. Compute the activity rate for each of the activity cost pools. Activity Rate per DLH per order Activity Cost Pool Labor-related Purchase orders Material receipts Relay assembly General factory per receipt per relay per MH
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