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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

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 $ 23,680 1,480 DLHs
Purchase orders Number of orders $ 860 430 orders
Product testing Number of tests $ 6,205 365 tests
Template etching Number of templates $ 1,400 50 templates
General factory Machine-hours $ 39,750 7,950 MHs

Required:

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

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