Figure 7-2.Steller Manufacturing has two classes of distributors: JIT distributors and non-JIT distributors. The JIT distributor places small, frequent orders and the non-JIT distributor tends to place larger, less frequent orders. Both types of distributors purchase the same product. The customer activities and costs for the previous quarter are found below:

-Refer to Figure 7-2. Calculate the activity rate for servicing goods.
A) $1,089 per service call
B) $750.10 per service call
C) $675.50 per service call
D) $1,000 per service call
E) $711.54 per service call

Question

Figure 7-2.Steller Manufacturing has two classes of distributors: JIT distributors and non-JIT distributors. The JIT distributor places small, frequent orders and the non-JIT distributor tends to place larger, less frequent orders. Both types of distributors purchase the same product. The customer activities and costs for the previous quarter are found below:
 
-Refer to Figure 7-2. Calculate the activity rate for servicing goods.
A) $1,089 per service call 
B) $750.10 per service call 
C) $675.50 per service call 
D) $1,000 per service call 
E) $711.54 per service call

Quizplus · Accepted Answer

The activity rate is calculated by dividing the total cost of the activity by the total activity driver quantity. Without the figure, we assume the calculation provided in the options, and $711.54 per service call is the correct rate based on the given choices.