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			Activity Base
Procurement		$157,380		Number of purchase orders
Scheduling		9,460		Number of production orders
Materials handling		32,400		Number of moves
Product development		21,750		Number of engineering changes
Total cost		$220,990

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			660			290			420			110			1,480
Refrigerators			630			140			300			40			1,110
	Totals		1,290			430			720			150			2,590

a. Determine the activity rate for each activity cost pool. If required, round your answers to the nearest dollar.

Procurement (per purchase order)	$fill in the blank 1
Scheduling (per production order)	$fill in the blank 2
Materials handling (per move)	$fill in the blank 3
Product development (per engineering change order)	$fill in the blank 4

b. Determine the activity-based cost per unit of each product. Round your answers to the nearest cent.

Ovens	$fill in the blank 5 per unit
Refrigerators	$fill in the blank 6 per unit

with explanation