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[The following information applies to the questions displayed below.] Rusties Company recently implemented an activity-based costing...

[The following information applies to the questions displayed below.]

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 Activity Measure Expected
Overhead Cost		 Expected
Activity
Labor-related Direct labor-hours $ 30,115 1,585 DLHs
Purchase orders Number of orders $ 2,320 580 orders
Product testing Number of tests $ 6,930 330 tests
Template etching Number of templates $ 870 30 templates
General factory Machine-hours $ 65,100 9,300 MHs

Required:

1. Compute the activity rate for each of the activity cost pools.

Activity Cost Pool Activity Rate
Labor-related per DLH
Purchase orders per order
Product testing per test
Template etching per template
General factory per MH
Business   Accounting   
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