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Foundational 5-5(LO2- CC6,7,8)(Algo) Myra Inc. manufactures two products-10,000 units of Product P and...

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Accounting

Foundational 5-5(LO2- CC6,7,8)(Algo)
Myra Inc. manufactures two products-10,000 units of Product P and 7,000 units of Product Q. The company uses a plantwide overhead rate based on direct labour hours. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products P and Q: (The total estimated overhead cost may not agree with the sum of allocated overhead costs to each product.)
\table[[Activity Cost Pool,Activity Measure,Estimated,],[Machining,Machine-hours,Overhead Cost,Expected Activity],[Machine setups,Number of setups,$153,000,10,000 MHs],[Product design,Number of products,$223,000,200 setups],[General factory,Direct labour hours,$50,600,2 products]]
\table[[Activity Measure,Product P,Product Q],[Machining,6,000,4,000],[Number of setups,50,150],[Number of products,1,1],[Direct labour hours,8,000,4,000]]
Required:
What is the activity rate for the Product Design activity cost pool?
Activity rate
per product
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