The Receiving Department of Staedler Company has three Cost Pools: UNLOADING, COUNTING GOODS, and INSPECTING. Unloading uses a forklift that is leased for $21,000 per year to offload 85 deliveries. The forklift is used only for UNLOADING. The fuel for the forklift is $2,700 per year. Other operating costs (i.e. maintenance) for the forklift total $1,200 per year. INSPECTING uses some special testing equipment that has a depreciation amount of $800 per year and an operating cost of $500. The Receiving Department has three employees who have an average salary of $58,000 per year. The work distribution matrix for these three receiving personnel is as follows: Cost Pools PERCENTAGE of Time on Each Activity UNLOADING 50% COUNTING GOODS 20% INSPECTING 30%

1. Calculate the cost of each Cost Pool?

2. If the cost driver for UNLOADING is the number of truck deliveries, CALCULATE the Activity Rate for the UNLOADING cost pool (round to 2 decimal places).

3. Provide one specific example of a change Staedler could make to their product or manufacturing process that could reduce costs incurred by the UNLOADING cost pool?