Figure 4-8
Tandem Company manufactures two products (D and F). The overhead costs ($84,000) have been divided into three cost pools that use the following activity drivers:

-Refer for Figure 4-8. What is the allocation rate per packing order using activity-based costing?
A) $18,750
B) $ 75
C) $ 1,875
D) $ 250

Question

Figure 4-8
Tandem Company manufactures two products (D and F). The overhead costs ($84,000) have been divided into three cost pools that use the following activity drivers:
 
-Refer for Figure 4-8. What is the allocation rate per packing order using activity-based costing?
A) $18,750 
B) $ 75 
C) $ 1,875 
D) $ 250

Quizplus · Accepted Answer

The allocation rate per packing order using activity-based costing is calculated by dividing the total cost allocated to the packing activity by the number of packing orders.

Figure 4-8 Tandem Company Manufactures Two Products (D and F). the Overhead