Digger Company uses Activity Based Costing and has already completed its first allocation of costs and

summarized its annual cost and activity as follows:

Activity Cost Pool

Estimated

Overhead

Cost Expected Activity

Trenching $$250,000250,000$ feet of trench

Removing soil $$525,000125,000$ cubic yards of soil

Drilling test holes $$227,500700$ test holes

Change orders $$90,000150$ change orders

Customer Service $$87,5003,500$ phone calls

Digger allocates Direct Costs as follows: Direct Materials $$2\mathrm{.}00$ per feet of trench and Direct labor of

$$1\mathrm{.}00$ per cubic yard of soil.

Required: Compute the activity rate for each activity cost pool as illustrated above:

Activity Cost Pool

Estimated

Overhead

Cost Expected Activity Activity Rate

Trenching...........................

Removing soil $....................$

Drilling test holes...............

Changer orders..................

Customer Service...............

Required: Compute the Activity Based Cost for a job that requires $5,200$ feet of trenching, $12,000$ cubic

yards of soil, $30$ test holes, $2$ change orders and $35$ customer service calls.

Activity Value Rate Amount

Direct Materials.................

Direct Labor.......................

ABC$-$Trenching...................

ABC$-$Removing soil $............$

ABC$-$Drilling test holes.......

ABC$-$Changer orders $..........$

ABC$-$Customer Service.......

TOTAL ACTIVITY BASED COST: $................$