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

Required
1. Compute the activity rate for each activity cost pool?
2. Compute the company's predetermined overhead rate, assuming that the company uses a single planwide predetermined overhead rate based on direct labor hours?

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Activity Cost Pool Estimated Overhead Cost Expected Activity Labor related $48,000 20,000 direct labor-hours Machine related $67,500 45,000 machine-hours Machine setups $84,000 600 setups Production orders $1,12,000 400 orders Product testing $58,500 900 tests Packaging $90,000 6,000 packages General factory $6,72,000 20,000 direct labor-hours