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 Pool Activity Activity Base Cost Procurement $12,600 Number of purchase orders Scheduling 90,000 Number of production orders Materials handling 11,000 Number of moves Product development 50,000 Number of engineering changes $163,600 Total cost The estimated activity-base usage and unit information for two product lines was determined as follows Number of Number of Number of Number of Production Engineering Change Purchase Orders Moves Units Orders Orders Ovens 400 800 300 80 1,000 400 200 120 300 500 Refrigerators 1,200 500 200 1,500 700 Totals TOtai cost 00o'cors The estimated activity-base usage and unit information for two product lines was determined as follows: Number of Number of Number of Number of Engineering Change Production Units Moves Purchase Orders Orders Orders 1,000 80 400 800 300 Ovens 500 120 400 200 300 Refrigerators 1,500 500 200 1,200 700 Totals a. Determine the activity rate for each activity cost pool. Procurement (per purchase order) Scheduling (per production order) Materials handling (per move) Product development (per engineering change order) b. Determine the activity-based cost per unit of each product. per unit Ovens Refrigerators per unit