Kretlow Corporation has provided the following data from its activity-based costing accounting system:?Activity Cost PoolsEstimated Overhead CostExpected Activity?Designing products$700,5023,746 product design hours?Setting up batches$12,400620 batch set-ups?Assembling products$125,4408,960 assembly hoursRequired:Compute the activity rates for each of the three cost pools. Show your work!
What will be an ideal response?
| ? | Estimated Overhead Cost | Expected Activity | Activity Rate |
| Designing products | $700,502 | 3,746 product design hours | $187 per product design hour |
| Setting up batches | $12,400 | 620 batch set-ups | $20 per batch set-up |
| Assembling products | $125,440 | 8,960 assembly hours | $14 per assembly hour |
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