1 Calculation of Activity rates for each activity cost pool using ABC Activity Costs Activity Base Appl. Dev. $ 18,00,000 New Applications Content Prod. $ 30,00,000 Lines of codes Testing $ 3,50,000 Testing Hours Cost Driver Overhead Rate 6 $ 3,00,000 1,00,00,000 $ 0.30 2,000 $ 175 2 Indirect Cost of each unit of X-Page and X-secure X-Page Activity Appl. Dev. Content Prod. Testing Overhead Rate Use of Cost Driver Overhead Cost $ 3,00,000 1 $ 3,00,000 $ 0.30 5,80,000 $ 1,74,000 $ 175 190 $ 33,250 Total Costs $ 5,07,250 Number of units $ 60,000 Per unit cost $ 8.45 X-Secure Overhead Rate Use of Cost Driver Overhead Cost 3,00,000 Activity Appl. Dev. Content Prod. Testing $ 3,00,000 $ 0.30 $ 175 Total Costs 26,10,000 1,99,500 1 $ 87,00,000 $ 1,140 $ $ $ $ 31,09,500 Number of units 17 Per unit cost 1,82,911.76 1 Calculation of Activity rates for each activity cost pool using ABC Activity Costs Activity Base Appl. Dev. $ 18,00,000 New Applications Content Prod. $ 30,00,000 Lines of codes Testing $ 3,50,000 Testing Hours Cost Driver Overhead Rate 6 $ 3,00,000 1,00,00,000 $ 0.30 2,000 $ 175 2 Indirect Cost of each unit of X-Page and X-secure X-Page Activity Appl. Dev. Content Prod. Testing Overhead Rate Use of Cost Driver Overhead Cost $ 3,00,000 1 $ 3,00,000 $ 0.30 5,80,000 $ 1,74,000 $ 175 190 $ 33,250 Total Costs $ 5,07,250 Number of units $ 60,000 Per unit cost $ 8.45 X-Secure Overhead Rate Use of Cost Driver Overhead Cost 3,00,000 Activity Appl. Dev. Content Prod. Testing $ 3,00,000 $ 0.30 $ 175 Total Costs 26,10,000 1,99,500 1 $ 87,00,000 $ 1,140 $ $ $ $ 31,09,500 Number of units 17 Per unit cost 1,82,911.76