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San Diego State University Operations And Supply Chain Management Assignment Help - Purchase

Question - 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
Activity Cost Pool Activity Measure
Expected Activity
Labor-related Direct labor-hours $ 18,000 2,000 DLHs
Purchase orders Number of orders $ 1,050 525 orders
Product testing Number of tests $ 3,500 350 tests
Template etching Number of templates $ 700 28 templates
General factory Machine-hours $ 50,000 10,000 MHs

1. Compute the activity rate for each of the activity cost pools.

Activity Cost Pool Activity Rate
Labor-related $ per DLH
Purchase orders $ per order
Product testin ...Read More

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