What the activity rate for order processing activity cost

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Question - Hettich Corporation uses an activity-based costing system with the following three activity cost pools:

Fabrication - 20,000 machine hours

Order processiong - 200 orders

Other - N/A

The Other activity cost pool is used to accumulate costs of idle capacity and organization-sustaining costs.

The company has provided the following data concerning its costs:

Wages & Salaries - 480,000

Depreciation - 120,000

Occupancy - $200,000

Total Cost - $800,000

What the activity rate for the Order Processing activity cost pool?

A) $1,400 per order B) $1,150 per order C) $800 per order D) $1,600 per order

Reference no: EM132960906

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