Activity Centers Cost Activity Drivers

Utilities 6,000,000 155,000

Scheduling and Setup 410,000 1,040
Material handling 860,000 2,190,000

Product A Product B
Prime cost 110,000 140,000
Machine hours 50,000 30,000
Number of setup 250 380
Pounds of materials 750,000 550,000
Number of units produced 70,000 45,000
Direct labor hours 45,000 29,000

Activity Center Pool rates

Utilities 38.71 /mhr
Scheduling and setup 394.23 /set up
Materials handling 0.39 lbs.

Product A Product B
Utilities:
A 1,935,483.87
B 1,161,290.32
C

Scheduling and Setups:

A 98,557.69
B 149,807.69
C

Material Handling:
A 294,520.55
B 215,981.74
C

TOTAL 2,328,562.11 1,527,079.75

Product C
170,000
75,000
410
890,000
65,000
55,000

Product C Total

2,903,225.81
6,000,000

161,634.62
410,000

349,497.72
860,000
3,414,358.14 7,270,000