Asked by Brisa Sanchez on Jun 23, 2024
Verified
The activity rate for the Production Orders activity cost pool under activity-based costing is closest to:
A) $71.81 per order
B) $196.10 per order
C) $125.38 per order
D) $178.27 per order
Activity Rate
The measure used to allocate costs to activities based on their use of resources.
Activity Cost Pool
A grouping of all the costs related to a particular activity, used in activity-based costing to more accurately allocate costs to products or services.
Activity-Based Costing
A costing method that allocates overhead costs to specific activities, providing more accurate costs of producing specific products or services.
- Assess activity rates pertinent to distinct cost pools guided by activity-based costing techniques.
Verified Answer
= $64,629 ÷ 900 orders = $71.81 per order
Learning Objectives
- Assess activity rates pertinent to distinct cost pools guided by activity-based costing techniques.
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