Questions 7-8 (of 8) The following information applies to the questions displaye

Question

Questions 7-8 (of 8) The following information applies to the questions displayed below. Adria 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 Measure Expected Overhead Cost Expected Activity Activity Cost Pool Labor-related Purchase orders Material receipts Relay assembly General factory Direct labor-hours 42,500 8,500 D Number of orders$ 5,600 2,800 orders Number of receipts 10,000 1,000 receipts Number of relays 14,400 1800 relays Machine-hours $ 245,000 35,000 MHs value: 10.00 points Required 1. Compute the activity rate for each of the activity cost pools. Activity Cost Pool Labor-related Purchase orders Material receipts Relay assembly General factory Activity Rate per DLH per order per receipt per relay per MH

Explanation / Answer

LAbor related(42500/8500) $5 per DLH Purchase orders(5600/2800) $2 per order Material receipts(10000/1000) $10 per receipt Relay assembly(14400/1800) $8 per relay General factory(245000/35000) $7 per MH

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