Implement Activity-Based Costing

The video tutorial explains the process of activity-based costing (ABC) in five steps: identifying activities, developing activity cost pools, calculating activity cost pool rates, allocating costs to products, and calculating unit product costs. It highlights the differences between classroom and practical applications, emphasizing the importance of cost drivers and the use of the predetermined overhead rate (POR) equation.

Explain how to calculate the activity cost pool rates.

What components are included in the calculation of unit product cost?