The activity rate for the Production Orders activity cost pool under activity-based costing is closest to:
A)$63.40 per order
B)$68.74 per order
C)$88.17 per order
D)$65.69 per order

Name: The activity rate for the Production Orders activity cost pool under activity-based costing is closest to: A)$63.40 per order B)$68.74 per order C)$88.17 per order D)$65.69 per order
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Activity rate = Estimated overhead cost ÷ Total expected activity
= $70,536 ÷ 800 orders = $88.17 per order

The Activity Rate for the Production Orders Activity Cost Pool