Exhibit 3-1
Hydrate Inc.makes two types of sports drinks and is implementing an activity-based costing system.Previously,all overhead had been applied on the basis of machine hours.The company produces 22,500 units of Sports Light and 42,284 units of Thirst Quench.Additional data is as follows:

-Refer to Exhibit 3-1.Using ABC,what is the cost per order for the Materials Ordering activity?
A)$462
B)$150
C)$200
D)$110
E)None of the answer choices is correct.

Question

Exhibit 3-1
Hydrate Inc.makes two types of sports drinks and is implementing an activity-based costing system.Previously,all overhead had been applied on the basis of machine hours.The company produces 22,500 units of Sports Light and 42,284 units of Thirst Quench.Additional data is as follows:
 
-Refer to Exhibit 3-1.Using ABC,what is the cost per order for the Materials Ordering activity?
A)$462 
B)$150 
C)$200 
D)$110 
E)None of the answer choices is correct.

Quizplus · Accepted Answer

The Answer of Exhibit 3-1
Hydrate Inc.makes two types of sports drinks and is implementing an activity-based costing system.Previously,all overhead had been applied on the basis of machine hours.The company produces 22,500 units of Sports Light and 42,284 units of Thirst Quench.Additional data is as follows:
 
-Refer to Exhibit 3-1.Using ABC,what is the cost per order for the Materials Ordering activity?
A)$462 
B)$150 
C)$200 
D)$110 
E)None of the answer choices is correct.

Exhibit 3-1 Hydrate Inc.makes Two Types of Sports Drinks and Is Implementing