Question: Taylor Company has identified 4 different activity pools for its overhead costs, allocated costs to each pool and estimated activity levels as summarized in the
Taylor Company has identified 4 different activity pools for its overhead costs, allocated costs to each pool and estimated activity levels as summarized in the following tables:
| Estimated activity levels for the year | |||
| Pool 1 | Number of setups | 1200 | |
| Pool 2 | Inspection hours | 6000 | |
| Pool 3 | Machine hours | 48000 | |
| Pool 4 | Number of parts | 26200 | |
| Direct labor hours | 38400 | ||
| Direct materials cost | 2096000 | ||
| Pool 1 | Pool 2 | Pool 3 | Pool 4 | |
| Setups | Quality control | Fabricating | Ordering | |
| Total estimated costs in each pool | $144000 | $252000 | $384000 | $550200 |
1. What is the activity rate for pool 2?
2. What is the activity rate for pool 4?
3. Assume Fuller used a single plant-wide rate based on direct labor hours. What would that rate be? (Round the rate to the nearest dollar.)
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