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

Question

Quizplus · Accepted Answer

The total overhead cost per order in the filling orders activity cost pool can be calculated as follows:

Activity rate = Total cost of filling orders activity pool / Total number of orders 
Activity rate = $148,000 / 2,975 
Activity rate = $49.67

Therefore, the correct answer is C, $49.67.

What Would Be the Total Overhead Cost Per Order According