1.
Concept explanation:
Activity rate:
The activity rate is determined by dividing the net activity cost, with the total number of activities. The calculation of the activity rate is the second step in the implementation of activity-based costing. After establishing the relationship between the overheads and the activity, the management has to ascertain the activity rate for that specific activity.
Requirement 1:
Calculate the activity for the given activity cost pools.
2.
Concept introduction:
Unit product cost:
It is the cost of every product of the company. It is calculated by dividing the total
Requirement 2:
Calculate the unit product cost for the given product using the ABC system.

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Chapter 5 Solutions
MANAGERIAL ACCOUNTING F/MGRS.
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