Enter the cost pool in total ($) and the cost driver ($) into the Calculator. The calculator will evaluate the Activity-Based Costing.

## Activity-Based Costing Formula

ABC = CP / CD

Variables:

- ABC is the Activity-Based Costing ($/$)
- CP is the cost pool in total ($)
- CD is the cost driver ($)

To calculate Activity-Based Costing, divide the cost pool total by the cost driver.

## How to Calculate Activity-Based Costing?

The following steps outline how to calculate the Activity-Based Costing.

- First, determine the cost pool in total ($).
- Next, determine the cost driver ($).
- Next, gather the formula from above = ABC = CP / CD.
- Finally, calculate the Activity-Based Costing.
- After inserting the variables and calculating the result, check your answer with the calculator above.

**Example Problem : **

Use the following variables as an example problem to test your knowledge.

cost pool in total ($) = 700

cost driver ($) = 3881