Adria Company recently implemented an activity-based costing system. At the beginning of the year, management made the following estimates of cost and activity in the company's five activity cost pools:

Required:
1. Compute the activity rate for each of the activity cost pools.
2. The expected activity for the year was distributed among the company's four products as follows:
Using the ABC data, determine the total amount of overhead cost assigned to each product.
3. Assume that prior to implementing ABC, Adria used a conventional cost system that applied all manufacturing overhead to products based on machine-hours. Explain how the conventional cost assignments would differ from the activity-based cost assignments with respect to Product C.

Activity Measure Expected Overhead Cost Expected Activity Activity Cost Pool $35,000 $4,000 $10,450 $7,000 $240,000 Labor-related.. Purchase orders._ _ _ _. . Direct labor-hours 7,000 DLHs 2,000 orders .. . . ..Number of orders 950 receipts 1,000 relays Machine-hours 40,000 MHs