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

In order to compute the activity rate for each activity cost pool, you need to sum up their total costs and divide them by the number of units produced. For example, if total wheel costs are $20000 and 2000 wheels were made then this would result in a unit cost of $10 per wheel ($20000/2000).

Similarly, if total pedal costs are $10000 with 1000 pedals manufactured then this gives us an activity rate of $10 per pedal as well ($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 organization. Knowing these figures can also help organizations make better decisions regarding pricing structure or resource allocation over time as well.