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1. Production Setup Inspection Shipping Cust. Serv.
Total activity cost
Divided by total activity base mh setups inspections cust. orders requests
Activity rate
2.
Activity Activity Activity Activity Activity Activity
Activity
Activity Base Usage Rate =Cost Activity Base Usage Rate =Cost Activity Base Usage Rate =Cost
Production mh mh mh
Setup setups setups setups
Inspection insp. insp. insp.
Shipping cust. orders cust. orders cust. orders
Customer service requests requests requests
Total
Number of units
Activity cost per unit
3.
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1. Production Setup Inspection Shipping Cust. Serv.
Total activity cost 500,000$ 144,000$ 44,000$ 115,000$ 84,000$
2.
Activity Activity Activity Activity Activity Activity
Activity
Activity Base Usage Rate =Cost Activity Base Usage Rate =Cost Activity Base Usage Rate =Cost
Production 5,000 mh $50 250,000$ 2,500 mh $50 125,000$ 2,500 mh $50 125,000$
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