Rizzo Manufacturing produces two types of cameras: 35mm and digital.The cameras are produced using one continuous process.Four activities have been identified: machining, setups, receiving, and packing.Resource drivers have been used to assign costs to each activity.The overhead activities, their costs, and the other related data are as follows:
Calculate an activity rate for packing based on packing orders.

A) $9.00 per packing order
B) $10.00 per packing order
C) $8.00 per packing order
D) $60.00 per packing order
E) $1.20 per packing order

Question

Rizzo Manufacturing produces two types of cameras: 35mm and digital.The cameras are produced using one continuous process.Four activities have been identified: machining, setups, receiving, and packing.Resource drivers have been used to assign costs to each activity.The overhead activities, their costs, and the other related data are as follows:
 Calculate an activity rate for packing based on packing orders.

A) $9.00 per packing order 
B) $10.00 per packing order 
C) $8.00 per packing order 
D) $60.00 per packing order 
E) $1.20 per packing order

Quizplus · Accepted Answer

$24,000 / 2,400 = $10.00 per packing order

Rizzo Manufacturing Produces Two Types of Cameras: 35mm and Digital