Costs assigned to an activity pool for vaccinating children at a well child clinic are $2,700 per month. Number of vaccinations is chosen as cost driver. On average, 300 vaccinations are given monthly. What is the ABC allocation rate for this activity?
A) Not enough information given
B) $27.00
C) $9.00
D) $0.90

Question

Quizplus · Accepted Answer

The ABC allocation rate is calculated by dividing the total costs by the number of activities. Here, $2,700 divided by 300 vaccinations equals $9.00 per vaccination.

Costs Assigned to an Activity Pool for Vaccinating Children at a Well