The company is considering adopting an activity-based costing system with the following activity cost pools, activi measures, and expected activity: Activity Cost Pool Labour-related Product testing Order size Activity Cost Pools Labour-related Product testing Order size Answer sheet Activity Measures Required: 1. Calculate the activity rates for each activity cost pool. (3 marks) DLHS Tests MHs New Estimated Overhead Cost Chapter Formulas: Activity rate= (Total cost in activity cost pool) + (Est. cost driver activity level of cost pool) Applied OH = (Activity rate) x (Actual activity level of cost driver for the cost pool) $95,700 $70,378 $385,926 Expected Activity Product V9 Product M6 3,190 660 4,100 2,810 880 3,760 Total 6,000 1,540 7,860 3 2. Allocate the overhead to each product and calculate the overhead per unit for each product. (8 marks) 4 25 26 27 28 29 30 1 32 BASE 33 14 37 38 Product V9 Product M6 Total Total