Activity cost pools
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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
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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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