Question

R Corporation is a diversified manufacturer of consumer goods. The company's activity-based costing system has the following seven activity cost pools:

Activity Cost Pool	Estimated Overhead Cost			Expected Activity
Labor-related	$	24,400		4,000	direct labor-hours
Machine-related	$	5,000		5,000	machine-hours
Machine setups	$	13,200		400	setups
Production orders	$	24,500		500	orders
Product testing	$	34,100		1,100	tests
Packaging	$	46,800		3,900	packages
General factory	$	49,600		4,000	direct labor-hours

1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.)

Activity Rate Activity Cost Pool Labor-related Machine-related per DLH per MH Machine setups per setup Production orders per order per test Product testing Packaging General factory per package per DLH

Answer 1

Answer :

Activity Cost Pool	Activity Rate
Labor related	6.10	per DLH
Machine related	1.00	per MH
Machine setups	33.00	per setup
Production orders	49.00	per order
Product Testing	31.00	per test
Packaging	12.00	per package
General Factory	12.40	per DLH

Note:

Activity Cost Pool	Overhead Cost	Expected Activity	Activity Rate (Overhead Cost / Expected Activity)
Labor related	24,400	4,000	per DLH	6.10	per DLH
Machine related	5,000	5,000	per MH	1.00	per MH
Machine setups	13,200	400	per setup	33.00	per setup
Production orders	24,500	500	per order	49.00	per order
Product Testing	34,100	1,100	per test	31.00	per test
Packaging	46,800	3,900	per package	12.00	per package
General Factory	49,600	4,000	per DLH	12.40	per DLH