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Rusties Company recently implemented an activity-based costing system. At the beginning of the year, management...

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Accounting

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Rusties Company recently implemented an activity-based costing system. At the beginning of the year, management made the following estimates of cost and activity in the company's five activity cost pools: Activity Cost Pool Labor-related Purchase orders Product testing Template etching General factory Activity Measure Direct labor-hours Number of orders Number of tests Number of templates Machine-hours Expected Overhead Cost $ 40,320 $ 1,650 $ 7,700 $ 1,260 $69,000 Expected Activity 2,240 DLHS 550 orders 385 tests 45 templates 11,500 MHS Required: 1. Compute the activity rate for each of the activity cost pools. Activity Rate per DLH per order Activity Cost Pool Labor-related Purchase orders Product testing Template etching General factory per test per template per MH

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