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Step 2/3: Calculate Activity Rate Using the first stage allocation and the activity levels calculate the Activity Rate for each activity. Make sure the activity rates are rounded to 2 decimal point. Computation of Activity Rates Activity Cost Pools Total Cost Total Activity Activity Rate (Round to 2 DP) Maintenance 150,000 18,000 8.33 Materials handling 70,000 6,000 11.66 Set ups 60,000 3,000 20 Inspection 100,000 9,000 11.11[TP2.1]   Step 4: Overhead Cost Assign costs to the cost object by using the second stage allocation: Computation of Total Cost Activity Cost Pools Activity Rate (Round to 2 DP) Job Activity ABC Cost (Round to 2 DP) Maintenance 8.33 18,000 149,94 Materials handling 11.66 6,000 69,96 Set ups 20 3000 60,00 Inspection 11.11 9000[TP3.1] 99,99 Total Overhead Costs

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