Figure 3-2 A company usually processes 20,000 orders at a total cost of $300,000. During the year, only 16,000 orders were processed.
Refer to Figure 3-2. What is the cost of unused activity?
A) $300,000
B) $240,000
C) $30
D) $60,000

Question

Quizplus · Accepted Answer

If the company usually processes 20,000 orders at a total cost of $300,000, we can calculate the cost per order as $15 ($300,000/20,000). Therefore, if only 16,000 orders were processed, the cost of unused activity would be $60,000 ($15 x 4,000). Option D is the correct answer.

Figure 3-2 a Company Usually Processes 20,000 Orders at a Total