Asked by Chamil Bruno on Jun 19, 2024
Verified
The activity rate for the Production Orders activity cost pool under activity-based costing is closest to:
A) $44.54 per order
B) $185.10 per order
C) $192.32 per order
D) $182.46 per order
Activity Rate
A rate used in activity-based costing to assign costs to activities based on their use of resources.
Activity Cost Pool
Refers to a grouping of all costs related to a specific activity used in activity-based costing to allocate overhead costs more accurately to products or services.
Activity-Based Costing
A method of costing that assigns costs to products or services based on the activities they require.
- Calculate activity rates for various cost pools under activity-based costing.
Verified Answer
= $40,086 ÷ 900 orders = $44.54 per order
Learning Objectives
- Calculate activity rates for various cost pools under activity-based costing.
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