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Pathfinders Unlimited has recently adopted an activity-based costing system. The activity rate for order processing is $1.75 per order, the rate for shipping is $10.20
Pathfinders Unlimited has recently adopted an activity-based costing system. The activity rate for order processing is $1.75 per order, the rate for shipping is $10.20 per shipment, the rate for setups is $40 per setup, and the rate for product assembly is $20 per direct labor hour. During the period, the company anticipates 5,000 orders, 12,500 shipments, 2,000 setups, and 10,250 direct labor hours. What is the expected cost in the order processing cost pool?
A : $421,250
B : $80,000
C : $8,750
D : $127,500
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