FairTrade Coffee Roasters, Inc.(FCR) harvests and grinds their own sustainable coffee beans for sale in the U.S. market. FCR uses the following machinery and direct labor hours for the relevant type of coffee bean in its production process. Meanwhile, overhead costs relating to electricity for machines hours are $5,000 and direct labor hours for grinding are $6,400,  Dark Roast: 16oz. uses 6 machine hours and 2 direct labor hours.  Light Roast: 16oz. uses 4 machine hours and 6 direct labor hours. 

Calculate the Overhead Application Rates per hour if FCR were to use an activity- based costing method.

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To calculate the overhead application rates per hour using an activitybased costing method for FairT... View the full answer