Calculate the cost of processing one sales order if the total activity cost is $1 720 000 p.a., the activity driver is the number of orders received and the annual quantity of the activity driver is
43 000 orders.

A) $20 per order.
B) $25 per order.
C) $40 per order.
D) $50 per order.

Activity Cost

The cost associated with a specific activity or process in the production or delivery of goods and services.

Activity Driver

An activity driver is a factor in activity-based costing that influences the costs of an activity, helping allocate costs more accurately to products or services.