Stan's Good Drugstore is an all-service drug store and fills prescriptions for nursing homes and individual customers.Stan's uses an activity-based costing system.Data concerning overhead costs and activity pools is as follows:
Activity Estimated Estimated
Cost Pool Wages "Other"
Prescriptions $48,000 $18,000
Deliveries $24,000 $10,000
Other $ 8,000 $12,000
Total $80,000 $40,000
During the month,Stan's fills 60,000 prescriptions and makes 5,000 deliveries.
Using activity-based costing what is the approximate cost per delivery?
A) $16.00
B) $4.80
C) $6.80
D) $24.00
Correct Answer:
Verified
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