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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