Answer:
a. Labor Cost Rate= 13 $ per DLH
b. Purchase orders Rate= $ 3 per order
c. Product testing Rate = $ 15 per test
d. Template etching Rate = $ 23 per template
e. General factory Rate= $ 6 per MHs
Explanation:
Data
Activity Activity Expected Overhead Expected
Cost Pool Measure Cost Activity
Labor-related Direct labor-hours $16,380 1,260 DLHs
Purchase orders Number of orders $1,920 640 orders
Product testing Number of tests $4,275 285 tests
Template etching Number of templates $805 35 templates
General factory Machine-hours $42,600 7,100 MHs
The activity rate can be obtained by dividing the total cost of each activity with the total cost of the driver allocated to it.
Calculations
Activity Rate = Expected Overhead Cost/ Expected Activity
a. Labor Cost Rate= $16,380 / 1,260 DLHs= 13 $ per DLH
b. Purchase orders Rate= $1,920/ 640 orders= $ 3 per order
c. Product testing Rate = $4,275 /285 tests= $ 15 per test
d. Template etching Rate = $805 /35 templates= $ 23 per template
e. General factory Rate= $42,600/ 7,100 MHs= $ 6 per MHs
