Problem:
Stereo City Co. manufactures speakers and receivers and uses activity-based costing. The following information is available:
Instructions: Compute the activity-based overhead rates.
Expected Use of Cost Driver
Per Activity
Activity Cost Pool Estimated Overhead
Ordering $180,000 24,000 orders
Soldering 192,000 64,000 machine hours
Inspecting 894,000 120,000 labor hours
Packing 873,600 56,000 boxes