The activity rate for the Order Filling activity cost pool under activity-based costing is closest to:
A)$2.86 per order
B)$49.00 per order
C)$5.10 per order
D)$2.00 per order

Question

Quizplus · Accepted Answer

We are given that the total cost of the Order Filling activity cost pool is $357,000 and the total number of orders processed in the cost pool is 70,000. Therefore, the activity rate for Order Filling is:
$357,000 ÷ 70,000 = $5.10 per order. Therefore, the closest answer choice is C, $5.10 per order.

The Activity Rate for the Order Filling Activity Cost Pool