Compute the activity rate for each activity cost pool. What is the unit cost of wheels, and what is the unit cost of pedals?

To calculate the activity rates for each pool of activity costs, add up the total cost and divide it by the units produced. As an example, if the total cost for wheels is $20000 and you made 2000 wheels then your unit costs would be $10 each ($20000/2000).

If the total cost of pedals is $10000 and we manufacture 1000 pedals, then our activity rate will be $10/pedal ($10000/1000). It’s important to remember though that these calculations do not take into account fixed costs such as overhead or other indirect expenses like materials handling which could affect the final price charged for products depending on how they are allocated across departments.

Overall then computing the activity rates is essential when it comes to accurately determining the cost of producing goods—as it provides a more detailed picture of how resources are being utilized (i.e., labor, supplies etc.) Within an organisation. These numbers can help an organization make better decisions over time about their pricing structure and resource allocation.