Hunter Corporation uses activity-based costing to determine product costs for external financial reports. At the beginning of the year, management made the following estimates of cost and activity in the company's five activity cost pools:
(a) Compute the activity rate (i.e., predetermined overhead rate) for each of the activity cost pools.

Respuesta :

The Labor Related activity rate is $7.5 per direct labor hours

The Production orders activity rate is $ 90 per order

The Material Receipts is $120 per receipts

The calculation is in tabular form so it is attached with this answer

What is activity rate ?

An activity ratio is a type of financial metric that indicates how efficiently a company is leveraging the assets on its balance sheet, to generate revenues and cash.

management and accounting departments. In other phrases, they're responsible for managing the overall economic front of the enterprise. read extra can use numerous interest ratios to gauge their performance. The maximum popular ratios are stock turnover and general assets turnover.

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