Potter & Weasley Company had the following activities, estimated indirect activity costs, and allocation bases: Activities Indirect Activity Costs Allocation Base Account inquiry (hours) $85,700 2600 Account billing (lines) $55,000 35,000 Account verification (accounts) $40,250 27,500 Correspondence (letters) $80,000 12,000Potter & Weasley uses activity based costing.

Meester Corporation has an activity-based costing system with three activity cost pools--Machining, Order Filling, and Other. In the first stage allocations, costs in the two overhead accounts, equipment depreciation and supervisory expense, are alloceted to three activity cost pools based on resource consumption, Data used in the first stage allocations follow Overhead costs: Equipment depreciation Supervisory expense $ 81,300 $ 2,200 Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools Machining Order Filling Other Equipment depreciation Supervisory expense 0.50 0.30 0. 20 e. 30 e.50 0.20 Mechining costs are assigned to products using machine-hours (MHs) and Order Filing costs are essigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity date for the companve o nroducts follaw You ae sren sharg Skop Share Activity MHs (Machining) Orders (Order Filling) Product Me 1,630 9,780 1,370…

Hochberg Corporation uses an activity-based costing system with the following three activity cost pools: Activity Cost Pool Total Activity Fabrication 30,000 machine-hours Order processing 300 orders Other Not applicable The Other activity cost pool is used to accumulate costs of idle capacity and organization-sustaining costs. The company has provided the following data concerning its costs: Wages and salaries $340,000 Depreciation Occupancy Total 160,000 220,000 $720,000 The distribution of resource consumption across activity cost pools is given below: Activity Cost Pools Fabrication Order Processing Other Total Wages and salaries 30% 60% 10% 100% Depreciation 15% 50% 35% 100% Occupancy 15% 55% 30% 100% The activity rate for the Fabrication activity cost pool is: A) $5.30 per machine-hour B) $3.60 per machine-hour C) $7.20 per machine-hour D) $4.80 per machine-hour

Data concerning three of Kilmon Corporation’s activity cost pools appear below:   Activity Cost Pools Estimated Overhead Cost Expected Activity Assembling products $ 86,070 4,530 assembly hours Designing products $ 605,412 3,012 product design hours Setting up batches $ 48,140 830 batch set-ups   Required: Compute the activity rates for each of the three cost pools.