Question: Rusties Company recently implemented an activity-based costing system. At the beginning of the year, management made the following estimates of cost and activity in the


Rusties Company recently implemented an activity-based costing system. At the beginning of the year, management made the following estimates of cost and activity in the company's five activity cost pools: Activity Cost Pool Labor-related Purchase orders Product testing lemplate etching General factory Expected Overhead Cost $ 30,160 $ 1,290 $ 4,830 $ 875 $64,200 Activity Measure Expected Activity Direct labor-hours Number of orders Number of tests Number of templates Machine-hours 2,320 DLHs 430 orders 345 tests 35 templates 10,700 MHs value: 10.00 points Required: 1. Compute the activity rate for each of the activity cost pools. Activity Cost Labor-related Purchase orders Product testing Template etching General factory Activity Rate Pool per DLH per order per test per template per MH
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