1. Activity rates are computed as follows:
Estimated (a)
Expected (b)
(a) ÷ (b)
Activity
Overhead
Cost
Activity Cost Pool
Rate
Machine setups... $72,000 400 setups $180 per setup
Special processing... $200,000 5,000 MHs $40 per MH
General factory ... $816,000 24,000 DLHs $34 per DLH
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