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Assume a company that uses activity-based costing (ABC) has only two products - A and B. The company does not have any organization sustaining activities

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Assume a company that uses activity-based costing (ABC) has only two products - A and B. The company does not have any organization sustaining activities or unused capacity costs. The company's total manufacturing overhead cost of $56,000 has been allocated to the three 'activities shown below: Activity measure quantity: Product Activity measure quantity: Product B Overhead cost per activity cost pool Activity rate Setups 20 20 ? $150 per set The activity rate for the Packing Orders activity is closest to: Multiple Choice $2000 per order $66.67 per order $28.57 per order $30.00 per order company that uses activity-based costing (ABC) has only two products -- A and B. The company does any organization-sustaining activities or unused capacity costs. The company's total manufacturing cost of $56,000 has been allocated to the three activities shown below: ity measure quantity: Product A ty measure quantity: Product B ead cost per activity cost pool ty rate Setups 20 20 ? $150 per setup Machining 1,000 ? ? 8 per MH Packing Orders 150 350 $10,000 ? y rate for the Packing Orders activity is closest to: ple Choice $20.00 per order. $66.67 per order

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