HighTechProducts Corp. uses a 1000-cost-pool system to allocate overhead costs to products. Cost pool 438 uses direct laborhours a a cost driver. HighTechProducts Corp. calculates cost driver rates using practical capacity Using the information below. what is the cost driver rate for Cost pool 438?

Total planned for next year Practical capacity Amount used by their competitor. Tracing Corp.

Machine hours 4000 8000 2500

Direct labor hours 1000 3000 1000

Costs in Cost Pool 438 $50,000 n/a $2,000

Answer rating: 100% (QA)

Total Cost in Cost pool 500002000 52000 Total D... View the full answer