Question
Quality Carvings manufactures furniture. They have decided to develop an activity-based costing system. Shown below is each activity, its cost and the activity driver used
Quality Carvings manufactures furniture. They have decided to develop an activity-based costing system. Shown below is each activity, its cost and the activity driver used to assign these costs to products. Activity Activity Quantity of Activity Cost Driver Activity Driver Process orders $37 800 #orders 1 500 Make patterns $140 000 # items made 8 000 Carving $248 000 # hours taken 4 000 Finishing $186 200 # items made 7 000 Under an activity-based costing system, what is the activity cost per unit of activity driver for making patterns? Select one: a. $4.73 b. $10.00 c. $17.50 d. $21.50
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