Foundational LO CCAlgo
Myra Inc. manufactures two products units of Product and units of Product The company uses a plantwide overhead rate based on direct labour hours. It is considering implementing an activitybased costing ABC system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products P and Q: The total estimated overhead cost may not agree with the sum of allocated overhead costs to each product.
tableActivity Cost Pool,Activity Measure,Estimated,MachiningMachinehours,Overhead Cost,Expected ActivityMachine setups,Number of setups,$ MHsProduct design,Number of products,$ setupsGeneral factory,Direct labour hours,$ products
tableActivity Measure,Product PProduct QMachiningNumber of setups,Number of products,Direct labour hours,
Required:
What is the activity rate for the Product Design activity cost pool?
Activity rate
per product
