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1. Kretlow Corporation has provided the following data from its activity-based costing accounting system:
Activity Cost Pools
Total Cost
Total Activity
Designing products......
$700,502
3,746
product design hours
Setting up batches........
$12,400
620
batch set-ups
Assembling products...
$125,440
8,960
assembly hours
Required:
Compute the activity rates for each of the three cost pools.
2. Data concerning three of Kilmon Corporation's activity cost pools appear below:
Assembling products.........
$150,300
8,350
Designing products............
$1,177,535
7,597
Setting up batches..............
$14,400
600
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