Slider processes rebate requests for a large building supply firm. Slider processed 420,000 rebates in March. All rebates are processed the same day they are received. March costs were labor of $28,000 and overhead of $14,000. What is the cost to process 1,000 rebates?
A) $66.67.
B) $100.00.
C) $10.00.
D) $42.00.

Question

Quizplus · Accepted Answer

The total cost for March is $28,000 (labor) + $14,000 (overhead) = $42,000. The cost per rebate is $42,000 / 420,000 rebates = $0.10 per rebate. Therefore, the cost to process 1,000 rebates is $0.10 * 1,000 = $100.00.

Slider Processes Rebate Requests for a Large Building Supply Firm