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