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Activity cost pools

U4A1 Problem 2
You have given this information for ABC Corporation. What is the Activity Rate for the three Activity costs Pools?
Activity Cost Pools total Costs Total Activity Activity Rate
Producing Units $500,000 1,000 machine hours ? per machine hour

Processing orders $100,000 1,000 customer orders ? per order

Customer Support $400,000 100 customers ? per customer

U4 A1 problem 3

Activity Measures Mine Own Firm makes Muscle Cars. Please Complete the table by providing an example of an activity measure for each acitvity.

Activity Level of Activity Example of Activity Measures

President working on Budget for year Organization

Designing a part for the cars Product

Sales calls by Sales people Customer

setting up equipment at plant Batch

direct labor on product unit

Example of Activity Measures

Solution Summary

The solution computes the Activity Rate for the three Activity costs Pools and provide an example of an activity measure for each activity.

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