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Computing Activity Rates [LO1 CC1; L02 CC6] Kramer Corporation is a diversified manufacturer...

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Computing Activity Rates [LO1 CC1; L02 CC6] Kramer Corporation is a diversified manufacturer of consumer goods. The company's activity-based costing system has the following seven activity cost pools: Activity Cost Pool Estimated Overhead Cost Expected Activity Labour related $ 48,000 30,000 direct labour-hours Machine related 67,500 10,000 machine-hours Machine setups 90,000 600 setups Production orders 112,000 3,500 orders Product testing 59,400 1,800 tests Packaging 76,500 4,500 packages General factory 672.000 30,000 direct labour-hours Page 210 Required: 1. Compute the activity rate for each activity cost pool. 2. Compute the company's predetermined overhead rate, assuming that the company uses a single plantwide, predetermined overhead rate based on direct labour-hours

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