2.

Barnard Corporation has provided the following data from its activity-based costing accounting system:

Activity Cost Pools Total Cost Total Activity

Designing products $806,715 6,895 product design hours

Batch Setup $23,660 910 batch set-ups

Assembling products $42,240 3,520 assembly hours

Required:

Compute the activity rates for each of the three cost pools. Show your work!

Total Cost Total Activity Activity Rate

Designing products product design hours per product design hour

Batch Setup batch set-ups per batch set-up

Assembling products assembly hours per assembly hour