Calculate the cost of processing one sales order if the total activity cost is $1 720 000 p.a., the activity driver is the number of orders received and the annual quantity of the activity driver is
43 000 orders.
A) $20 per order.
B) $25 per order.
C) $40 per order.
D) $50 per order.

Question

Quizplus · Accepted Answer

The cost of processing one sales order is calculated by dividing the total activity cost by the annual quantity of the activity driver. Therefore, $1,720,000 / 43,000 orders = $40 per order.

Calculate the Cost of Processing One Sales Order If the Total