EXERCISE 8-21 (CONTINUED)

2. The activity rates are computed as follows:

Activity Cost Pool (a)

Total Cost (b)

Total Activity (a) ÷ (b)

Activity Rate

Cleaning carpets .. $161,000 20,000 hundred

square feet $8.05 per hundred

square feet

Travel to jobs ... $78,000 60,000 miles $1.30 per mile

Job support ... $59,000 2,000 jobs $29.50 per job