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John is not satisfied with the traditional method of allocating overhead because he believes that most of the overhead costs relate to the truck wheel product line because of its complexity. He therefore develops the following three activity cost pools and related cost drivers to better understand these costs: Activity Cost Pools Setting up machines Assembling Inspection Estimated Overhead Costs $408.000 370,000 52,000 Estimated Use of Cost Drivers 800 set-ups 37,000 labour hours 104 inspections Calculate the activity-based overhead rates for these three cost pools. Rate Cost Pool Setting up machines per set-up $ $ Assembling $ per labour hour Inspection $ per inspection eTextbook and Media Calculate the cost that is assigned to the car and truck product lines using an activity-based costing system, given the following information: Use of Cost Drivers per Product Car Truck 190 610 20,500 16,500 45 59 Number of set-ups Direct labour hours Number of inspections Car Truck Overhead assigned $ UA $ Cullumber Inc. uses activity-based costing as the basis for information to set prices for its six lines of seasonal coats. Calculate the activity-based overhead rates using the following budgeted data for each of the activity cost pools. (Round answers to 2 decimal places, e.g. 15.25.) Activity Cost Pools Sizing and cutting Stitching and trimming Wrapping and packing Estimated Overhead $4,010,245 2,315,720 391.980 Estimated Use of Cost Drivers per Activity 196,100 machine hours 83,600 labour hours 41.700 finished units Cost Pool Rate Sizing and cutting $ per machine hr. Stitching and trimming $ per labour hr. Wrapping and packing $ per unit

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