The activity rate for the Production Orders activity cost pool under activity-based costing is closest to:
A)$44.54 per order
B)$185.10 per order
C)$192.32 per order
D)$182.46 per order

Name: The activity rate for the Production Orders activity cost pool under activity-based costing is closest to: A)$44.54 per order B)$185.10 per order C)$192.32 per order D)$182.46 per order
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Activity rate = Estimated overhead cost ÷ Total expected activity
= $40,086 ÷ 900 orders = $44.54 per order

The Activity Rate for the Production Orders Activity Cost Pool