Fenya Industries produces two surge protectors: K2761 with six outlets and D3354 with eight outlets and two telephone line connections. Because of these product differences, the company plans to use activity-based costing to allocate overhead costs. The company has identified four activity pools. Relevant information follows.

Expected activity for each product follows.

Required
a. Compute the overhead rate for each activity pool.
b. Determine the overhead cost allocated to eachproduct.

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Activity Pools Cost Pool Total Cost Driver Machine setup Machine operation Quality control Packaging Total overhead cost $144,000 360,000 57,600 38,400 $600,000 Number of setups Number of machine hours Number of inspections Number of units Number of Setups 48 72 120 Number of Machine Hours K2761 D3354 Total 1,400 2,600 4,000 Number of Inspections 78 172 250 Number of Units 25,000 15.000 40.000