Activity Based Costing Calculator

Activity Based Costing Calculator calculator can be used to allocate overhead costs more accurately by identifying activities and their associated costs.

Input Parameters

Calculation Results

Calculation Formula

Cost per unit of activity = Total Cost / Total Activity Driver

Where:
Total Cost = Sum of all activity costs
Total Activity Driver = Sum of all activity drivers

Activity Based Costing Calculator Calculator Usage Guide

Learn how to use the Activity Based Costing Calculator calculator and its working principles

How to Use the Calculator

  1. Enter the name of the first activity.
  2. Enter the total cost associated with the first activity.
  3. Enter the activity driver for the first activity (e.g., number of units, machine hours).
  4. Repeat steps 1-3 for the second activity.
  5. Click the "Calculate" button to compute the cost per unit of activity for each activity.
  6. The results will be displayed in the respective fields.

Understanding the Formula

The calculator uses the following formula to determine the cost per unit of activity:

Cost per unit of activity = Total Cost / Total Activity Driver

This formula helps in allocating overhead costs more accurately by identifying activities and their associated costs and drivers.