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I have a problem that I need help with. I need to compute the activity-based overhead rates for 4 cost pools.

Stereo City Co. manufactures speakers and receivers and uses activity-based costing. The following information is available:
Instructions: Compute the activity-based overhead rates.
Expected Use of Cost Driver
Per Activity
Ordering \$180,000 24,000 orders
Soldering 192,000 64,000 machine hours
Inspecting 894,000 120,000 labor hours
Packing 873,600 56,000 boxes

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Stereo City Co. manufactures speakers and receivers and uses activity-based costing. The following information is available:
Instructions: Compute the activity-based overhead rates.
Expected Use of Cost Driver
Per Activity
Ordering \$180,000 24,000 orders
Soldering 192,000 64,000 machine hours
Inspecting 894,000 120,000 labor hours
Packing 873,600 56,000 boxes

The activity rate for a cost pool is calculated as Estimated Cost of Activity/Expected use of cost driver
The activity based overhead rates are
Ordering = 180,000/24,000 = \$7.50 per order
Soldering = 192,000/64,000 = \$3 per machine hour
Inspection = 894,000/120,000 = \$7.45 per labor hour
Packing = 873,600/56,000 = \$15.6 per box

This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!