Question: . Management is considering using activity-based costing to apply manufacturing overhead cost to products for external financial reports. The activity-based costing system would have the

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Management is considering using activity-based costing to apply manufacturing overhead cost to products for external financial reports. The activity-based costing system would have the following four activity cost pools:

Activity Cost Pool Activity Measure Estimated Overhead Cost
Maintaining parts inventory Number of part types $ 108,480
Processing purchase orders Number of purchase orders 212,000
Quality control Number of tests run 304,120
Machine related Machine-hours 64,680

$ 689,280

Expected Activity
Activity Measure

Mono-Relay

Bi-Relay

Total
Number of part types 528 828 1,356
Number of purchase orders 3,228 1,012 4,240
Number of tests run 5,628 9,578 15,206
Machine-hours 1,028 1,128 2,156

Determine the activity rate for each of the four activity cost pools.

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