-What would be the total overhead cost per order according to the activity-based costing system,rounded to the nearest whole cent? In other words,what would be the overall activity rate for the Filling Orders activity cost pool?
A) $48.00.
B) $49.67.
C) $52.00.
D) $56.00.

Question

-What would be the total overhead cost per order according to the activity-based costing system,rounded to the nearest whole cent? In other words,what would be the overall activity rate for the Filling Orders activity cost pool?
A) $48.00. 
B) $49.67. 
C) $52.00. 
D) $56.00.

Quizplus · Accepted Answer

To calculate the overall activity rate for the Filling Orders activity cost pool, we need to divide the total cost of the activity pool by the total number of orders.

Total cost of Filling Orders activity pool = $498,400 
Total number of orders = 10,000

Therefore, the overall activity rate for Filling Orders = $498,400 / 10,000 = $49.84

Rounded to the nearest whole cent, the total overhead cost per order would be $49.67, which is answer choice B.

-What Would Be the Total Overhead Cost Per Order According