Problem
Sultan Company uses an activity-based costing system. At the beginning of the year, the company made the following estimates of cost and activity for its five activity cost pools: Activity Cost Pool
Activity Measure
Expected Overhead Cost VS Expected Activity
Labor-related Direct labor-hours $ 314,000 31,400 DLHs
Purchase orders Number of orders $ 10,215 227 orders
Parts management Number of part types $ 98,790 111 part types
Board etching Number of boards $ 70,800 1,770 boards
General factory Machine-hours $ 223,600 17,200 MHs
Required:
1. Compute the activity rate for each of the activity cost pools.