Activity-based cost analysis of 20X5 sorting costs (in 000s)

Activity Cost driver Cost pool Total activity

Pre-sort piece $ 4,844 96,180

Sort letters piece 1,362 37,800

Separate regular and express parcels kilogram 6,467 29,190

*Sort regular parcels piece 5,113 53,760

*Sort express parcels piece 3,722 4,620

Expedite parcels hours 2,538 126

Distribute to mail carriers bundle 2,950 5,000

TOTAL SORTING COSTS $ 26,996

*Average weight of parcels is 0.5 kg. Activity-based costing 20X5 units of activity (in 000s)

Activity Letters Express parcel Regular parcel Total

Pre-sort 37,800 4,620 53,760 96,180

Sort letters 37,800 37,800

Separate regular 2,310 26,880 29,190

Sort regular parcels 53,760 53,760

Sort express parcels 4,620 4,620

Expedite parcels 126 126

Distribute to mail carriers 3,000 2,000 5,000

reallocate sorting labour and sorting overhead costs to each of th edepartment using the cativity based costing .