-What would be the total overhead cost per delivery 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 Deliveries activity cost pool?
A) $3.93.
B) $4.71.
C) $4.93.
D) $5.50.

Question

-What would be the total overhead cost per delivery 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 Deliveries activity cost pool?
A) $3.93. 
B) $4.71. 
C) $4.93. 
D) $5.50.

Quizplus · Accepted Answer

According to the activity-based costing system, the overall activity rate for the Deliveries activity cost pool can be calculated by dividing the total cost of that activity ($1,179,000) by the total number of deliveries (that is, the sum of the individual activity cost drivers multiplied by their respective volumes), which comes to 239,000. Therefore, the overall activity rate for deliveries is $4.93 per delivery (rounded to the nearest whole cent). Hence, the best choice is C.

-What Would Be the Total Overhead Cost Per Delivery According