The activity usage data given in the problem reflects current usage of the various cost drivers to manufacturethe firm's product lines. Suppose you are given the following information regarding the firm's practical capacity for each of these activities, as follows:

$\backslash$table$[[$Cost Driver,Practical$],[$Number of parts,$940,500],[$Number of production orders,$800],[$Number of setups,$200],[$Machine hours,$120,000],[$Direct labor hours,$137,500],[$Number of orders shipped,$4,900]]$

Compute the new activity rates using practical capacity and comment on how you would use this additional information for costing the firm's products and assisting in strategic planning.