Question
Andiamo Manufacturing produces two types of tablets: basic and deluxe. The tablets are produced using one continuous process. Four activities have been identified: machining, setups,
Andiamo Manufacturing produces two types of tablets: basic and deluxe. The tablets 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 manufacturing overhead activities, their costs, and the other related data are as follows:
Product
Machine Hours
Setups
Receiving Orders
Packing Orders
basic
20,000
200
100
800
deluxe
20,000
500
400
4,000
Costs
$80,000
$60,000
$10,000
$30,000
What is the activity rate for packing that is based onpacking orders?
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