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Cullumber Manufacturing Company has supported a research and development (R\&D) department that has for many years been the sole contributor to the company's new farm machinery products. The R\&D activity is an overhead cost center that performs services only to in-house manufacturing departments (four different product lines), all of which produce agricultural/farm/ranch-related machinery products. The department has never sold its services to outside companies. But, because of its long history of success, larger manufacturers of agricultural products have approached Cullumber to hire its &D department for special projects. Because the costs of operating the R&D department have been spiraling uncontrollably, Cullumber's management is considering entertaining these outside approaches to absorb the increasing costs. However, (1) management doesn't have any cost basis for charging R\&D services to outsiders, and (2) it needs to gain control of its R\&D costs. Management decides to implement an activity-based costing system in order to determine the charges for both outsiders and in-house users of the department's services. R&D activities fall into four pools with the following annual costs. Activity analysis determines that the appropriate cost drivers and their usage for the four activities are: - Your answer is correct. Compute the activity-based overhead rate for each activity cost pool. How much cost would be charged to an in-house manufacturing department that consumed 1,970 hours of market analysis time, was provided 290 designs relating to 11 products, and requested 84 engineering tests? Total overhead assigned $ eTextbook and Media Attempts: 1 of 3 used C) How much cost would serve as the basis for pricing an R\&D bid with an outside company on a contract that would consume 870 hours of analysis time, require 185 designs relating to 3 products, and result in 66 engineering tests? Total overhead assigned $