Nissex Manufacturing Company manufactures two products (I and II). The overhead costs ($79,000) have been divided into three cost pools that use the following activity drivers: $\begin{array}{lccc}
&&\text { Number of Labor }\
\text { Product } & \text {Number of Orders } & \text { Transactions } &\text { Labor Hours }\
\hline I& 20 & 60 & 650 \
II & 12 & 180 & 2,500 \
\text { Cost per pool } & \$ 14,000 & \$ 10,000 & \$ 55,000
\end{array}$ What is the allocation rate per order using activity-based costing (ABC) system? (Round the answer to two decimal places.)

Question

Nissex Manufacturing Company manufactures two products (I and II). The overhead costs ($79,000) have been divided into three cost pools that use the following activity drivers: $\begin{array}{lccc} 
&&\text { Number of Labor }\
\text { Product  } & \text {Number of Orders } & \text { Transactions } &\text { Labor Hours }\
\hline I& 20 & 60 & 650 \
II & 12 & 180 & 2,500 \
\text { Cost per pool } & \$ 14,000 & \$ 10,000 & \$ 55,000
\end{array}$ What is the allocation rate per order using activity-based costing (ABC) system? (Round the answer to two decimal places.)

Quizplus · Accepted Answer

The Answer of Nissex Manufacturing Company manufactures two products (I and II). The overhead costs ($79,000) have been divided into three cost pools that use the following activity drivers: $\begin{array}{lccc} 
&&\text { Number of Labor }\
\text { Product  } & \text {Number of Orders } & \text { Transactions } &\text { Labor Hours }\
\hline I& 20 & 60 & 650 \
II & 12 & 180 & 2,500 \
\text { Cost per pool } & \$ 14,000 & \$ 10,000 & \$ 55,000
\end{array}$ What is the allocation rate per order using activity-based costing (ABC) system? (Round the answer to two decimal places.)

Nissex Manufacturing Company Manufactures Two Products (I and II) What Is the Allocation Rate Per Order Using Activity-Based Costing