Answer:The activity rate for each activity of Company CC is:
Activity rate for cutting is $60 per dlh.
Activity rate for sewing is $15 per dlh.
Activity rate setup is $80 per setup.
Activity rate for inspection is $65 per inspection.
Explanation: Activity based costing trace overhead cost to each activity and absorbed at a rate for each activity rather than a rate per direct labour hour
Calculate activity rate for cutting
Cutting = cost of cutting/ Number of labour hours
$90,000/1500 = $60 per direct labour hour
Calculate the cost of sewing
Sewing= cost of sewing/ Number of labour hours
$22,500/1500 = $15 per direct labour hour
Calculate the cost of set up
Setup = cost of set up/ number of set ups
$80,000/ 1000 = $80 per set up
Calculate the cost of inspection
Inspection = cost of inspection/ number of inspection
$32,500/ 500 = $65 per inspection
