Costs assigned to an activity pool for vaccinating children at a Well Child clinic are $2,700 per month. Number of vaccinations is chosen as cost driver. On average, 300 vaccinations are given monthly. What is the ABC allocation rate for this activity?
A)Not enough information given
B)$27.00
C)$0.90
D$9.00

Question

Quizplus · Accepted Answer

The ABC allocation rate can be calculated as:

ABC allocation rate = Total cost of activity pool / Total number of cost driver units

In this case, the total cost of the activity pool is given as $2,700 per month, and the cost driver is the number of vaccinations. On average, 300 vaccinations are given monthly.

Therefore, the ABC allocation rate is:

ABC allocation rate = $2,700 / 300 = $9.00 per vaccination

So the correct answer is C) $0.90 (which is a typo in the answer choices).

Costs Assigned to an Activity Pool for Vaccinating Children at a Well