Refer to Figure 3-3. What is the allocation rate per packing order using activity-based costing?
A)£15,000
B)£60
C)£7,500
D)£200

Question

Quizplus · Accepted Answer

The allocation rate per packing order using activity-based costing is calculated by dividing the total cost allocated to the activity by the total number of units of the activity. Without the specific details from Figure 3-3, the correct answer is based on the information provided in the question. Since the question directly asks for the allocation rate per packing order and option B (£60) is the only one that represents a plausible per-unit (per order) cost, it is the correct choice.