Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

how did we get C ANSWER 106. Stan's Good Drugstore is an all-service drug store and fills prescriptions for nursing homes and individual customers. Stan's

image text in transcribed

how did we get C ANSWER

image text in transcribed
106. 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Horngrens Cost Accounting A Managerial Emphasis

Authors: Srikant M. Datar, Madhav V. Rajan, Louis Beaubien

8th Canadian Edition

134453735, 9780134824680, 134824687, 9780134733081 , 978-0134453736

More Books

Students also viewed these Accounting questions