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What is the inspection activity-cost driver rate ? Mayan Potters manufactures two sizes of ceramic paperweights, regular and jumbo. The following information applies to their

What is the inspection activity-cost driver rate ?

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Mayan Potters manufactures two sizes of ceramic paperweights, regular and jumbo. The following information applies to their expectations for the planning period: Cost pool Overhead costs Activityicost driver Machine handling 45,000 90,000 orders Machine maintenance 300,000 15,000 hours Setups 270,000 45,000 setups Inspections 105,000 21,000 inspections Total support costs 720,000 Production Estimates Production units: Regular = 8,000,000 units Jumbo = 16,000,000 units Machinehours = 200,000 machine hours Laborhours = 400,000 direct labor hours

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