Activity Cost Pools, Activity Rates, and Product Costs using Activity-Based Costing Caldwell Home Appliances Inc. is estimating the activity cost associated with producing ovens and refrigerators. The indirect labor can be traced into four separate activity pools, based on time records provided by the employees. The budgeted activity cost and activity-base information are provided as follows: Activity Activity Pool Cost Procurement $12,600 Activity Base Number of purchase orders Scheduling 90,000 Number of production orders Materials handling 11,000 Number of moves Product development Total cost 50,000 $163,600 Number of engineering changes The estimated activity-base usage and unit information for two product lines was determined as follows: Number of Purchase Orders Number of Production Orders Number of Moves Number of Engineering Change Orders Units Ovens 400 800 300 80 1,000 Refrigerators 300 400 200 120 500 Totals 700 1,200 500 200 1,500 a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar. Activity Casting Assembly Activity Rate per machine hour per direct labor hour Inspecting Setup Materials handling per inspection per setup per load b. Use the activity rates in (a) to determine the total and per-unit activity costs associated with each product. Round the per unit amounts to the nearest cent. Product Entry Lighting Fixtures Dining Room Lighting Fixtures Total Activity Cost Activity Cost Per Unit