Cullumber Ride is a trucking company. It provides local, short-haul, and long-haul services. It has developed the following three cost pools. Estimated Use of Estimated Cost Driver Activity Cost Pools Cost Drivers Overhead per Activity Loading and unloading Number of pieces $79,290 88,100 Travel Miles driven 441,750 589,000 Logistics Hours 62,040 2,820 (a) Compute the activity-based overhead rates for each pool. (Round your answers to two decimal places (eg, 12.75).) Activity Cost Pool Activity-Based Overhead Rate Loading and unloading $ Travel $ per piece per mile Logistics $ per hour

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter12: Activity-based Management
Section: Chapter Questions
Problem 14E: Sanford, Inc., has developed value-added standards for four activities: purchasing parts, receiving...
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Cullumber Ride is a trucking company. It provides local, short-haul, and long-haul services. It has developed the following three cost
pools.
Estimated Use of
Estimated
Cost Driver
Activity Cost Pools
Cost Drivers
Overhead
per Activity
Loading and unloading
Number of pieces
$79,290
88,100
Travel
Miles driven
441,750
589,000
Logistics
Hours
62,040
2,820
(a)
Compute the activity-based overhead rates for each pool. (Round your answers to two decimal places (eg, 12.75).)
Activity Cost Pool
Activity-Based
Overhead Rate
Loading and unloading
$
Travel
$
per piece
per mile
Logistics
$
per hour
Transcribed Image Text:Cullumber Ride is a trucking company. It provides local, short-haul, and long-haul services. It has developed the following three cost pools. Estimated Use of Estimated Cost Driver Activity Cost Pools Cost Drivers Overhead per Activity Loading and unloading Number of pieces $79,290 88,100 Travel Miles driven 441,750 589,000 Logistics Hours 62,040 2,820 (a) Compute the activity-based overhead rates for each pool. (Round your answers to two decimal places (eg, 12.75).) Activity Cost Pool Activity-Based Overhead Rate Loading and unloading $ Travel $ per piece per mile Logistics $ per hour
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