Enter the cost pool total ($) and the cost driver into the Activity Rate Calculator. The calculator will evaluate the Activity Rate.
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Activity Rate Formula
The following two example problems outline the steps and information needed to calculate the Activity Rate.
ACR = CP / CD
- Where ACR is the Activity Rate
- CP is the cost pool total ($)
- CD is the cost driver
To calculate the activity rate, divide the cost pool total by the cost driver.
How to Calculate Activity Rate?
The following example problems outline how to calculate Activity Rate.
Example Problem #1:
- First, determine the cost pool total ($).
- The cost pool total ($) is given as: 500.
- Next, determine the cost driver.
- The cost driver is provided as: 10.
- Finally, calculate the Activity Rate using the equation above:
ACR = CP / CD
The values provided above are inserted into the equation below and computed.
ACR = 500 / 10 = 50
Example Problem #2:
For this problem, the variables required are provided below:
cost pool total ($) = 600
cost driver = 7
Test your knowledge using the equation and check your answer with the calculator..
ACR = CP / CD = ?