Ready Ride is a trucking company. It provides local, short-haul, and long-haul s

Question

Ready Ride is a trucking company. It provides local, short-haul, and long-haul services. It has developed the following three cost pools. Estimated Overhead Expected Use of Cost Driver per Activity Activity Cost Pool Cost Drivers Loading and unloading Travel Logistics Number of pieces Miles driven Hours $85,000 459,000 60,000 92,300 605,000 2,790 Your answer is incorrect. Try again. Compute the activity-based overhead rates for each pool. (Round answers to 2 decimal places, e.g. 12.75.) Activity-Based Overhead Rate Activity Cost Pool Loading and unloading per piece Travel per mile Logistics per hour

Explanation / Answer

Activity cost pool Loading and unloading (85,000/92,300)= 0.92 per piece Travel (459000/605,000)= 0.76 per mile logistics (60,000/2,790)= 21.51 per hour overhead applied to Job 306 rate * Loading and unloading 0.92 150 = 138.14 Travel 0.76 200 = 151.74 logistics 21.51 0.75 = 16.13 overhead applied to job 306.00

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