1. Kretlow Corporation has provided the following data from its activity-based costing accounting system:
|
Activity Cost Pools
|
Total Cost
|
Total Activity
|
|
Designing products......
|
$700,502
|
3,746
|
product design hours
|
|
Setting up batches........
|
$12,400
|
620
|
batch set-ups
|
|
Assembling products...
|
$125,440
|
8,960
|
assembly hours
|
Required:
Compute the activity rates for each of the three cost pools.
2. Data concerning three of Kilmon Corporation's activity cost pools appear below:
|
Activity Cost Pools
|
Total Cost
|
Total Activity
|
|
Assembling products.........
|
$150,300
|
8,350
|
assembly hours
|
|
Designing products............
|
$1,177,535
|
7,597
|
product design hours
|
|
Setting up batches..............
|
$14,400
|
600
|
batch set-ups
|
Required:
Compute the activity rates for each of the three cost pools.