John Gordan Company had the following activities, traceable costs, and physical flow of driver units:
The above activities are used by departments A and B as follows:

-What is the cost per driver unit for the account verification activity?
A) $40.00
B) $0.07
C) $3.75
D) $12.50

Question

John Gordan Company had the following activities, traceable costs, and physical flow of driver units:
  The above activities are used by departments A and B as follows:
 
-What is the cost per driver unit for the account verification activity?
A) $40.00 
B) $0.07 
C) $3.75 
D) $12.50

Quizplus · Accepted Answer

To calculate the cost per driver unit for the account verification activity, we need to divide the total cost of the activity ($15,000) by the total number of driver units (4,000). 
$15,000/4,000 = $3.75(cost per driver unit)

John Gordan Company Had the Following Activities, Traceable Costs, and Physical