Asked by Miranda Wilkerson on Jul 06, 2024
Verified
What is the activity rate for materials handling?
A) $1.50 per part
B) $3.75 per part
C) $7.50 per part
D) $2.50 per part
Activity Rate
A measure used to quantify the level of activity or engagement in a particular process or system, often used in costing and efficiency analysis.
Materials Handling
The movement, protection, storage, and control of materials and products throughout manufacturing, warehousing, distribution, consumption, and disposal.
- Execute activity-based costing to estimate overhead and examine its impact on setting prices.
Verified Answer
SW
selena williamsJul 09, 2024
Final Answer :
D
Explanation :
The activity rate for materials handling is not directly calculable from the provided information, as it requires specific details about the materials handling costs and the number of parts handled. The given data includes total cost per unit, selling and administrative costs, total variable cost, and desired profit per unit, but does not specify the costs associated with materials handling or the activity level (number of parts) to calculate the rate per part. Therefore, without additional information, the correct activity rate for materials handling cannot be determined.
Learning Objectives
- Execute activity-based costing to estimate overhead and examine its impact on setting prices.