Data concerning three of the activity cost pools of Salcido LLC, a legal firm, have been provided below: Activity Cost Pool Total Cost Total Activity Researching legal issues $ 20,930 670 research hours Meeting with clients $ 1,184,706 7,313 meeting hours Preparing documents $ 92,290 5,770 documents The activity rate for the "meeting with clients" activity cost pool is closest to:

= $162 per meeting hour

Explanation:

Under activity-based costing method, overheads are charged to units produced using cost drivers unlike the traditional absorption costing where overhead are charged using volume-related bases only like direct labor hours.

A cost driver is the most important factor that causes a change in the amount of activity overhead. For example, an appropriate cost driver for allocating Meetings with clients overheads  would be meeting hours.

Overheads Activity rate = Activity overhead / number of cost drivers

Activity rate for meeting with clients

= Activity overheads/ total meeting hours

Meeting with clients overhead = $1,184,706

Total meeting hours = 7,313 hours

=  $ $1,184,706/ 7,313 hours

= $162 per meeting hour

step 1: create a plan

step 2: inventory facility equipment/assets

step 3: create preventive maintenance procedures

step 4: create preventive maintenance schedules

step 5: train your maintenanceteam

step 6: analyze – adjust - improve

or

step 1 – pm procedure design: doing the effective things

step 2 – pm procedure scheduling: efficient use of people and resources

step 3 – pm lubrication engineering

step 4 – pm training: back on the chain gang

step 5 – pm program management plan

step 6 – communicate, communicate, communicate