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Exercise chapter 11 Exercise 11.18 page 804 524 LO 3 DO 11.18 Fruits on High Ltd uses three activity pools to assign costs to customers in order to assess customer profitability. Each activity cost pool has a unique cost driver to apply indirect costs to customers. Estimated indirect Estimated total usage of cost Activity Cost driver costs driver Sales returns Number of returns $200 000 5 500 returns Order Lines on order $550 000 550 000 lines processing Rush orders Number of rush $300 000 12000 orders orders Required Calculate the activity cost rate for each activity. Hint: Estimated indirect cost/estimated total usage of cost driver Example: Sales return = 200,000/5,500 returns