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Question 33 A company identified the following partial list of activities, costs, and activity drivers expected for the next year: Activity Extrusion costs Handling costs
Question 33 A company identified the following partial list of activities, costs, and activity drivers expected for the next year: Activity Extrusion costs Handling costs Packaging costs Production volume Batches made Orders filled Expected Costs $288,800 $8,800 $40,500 Product A 750,000 units 200 batches 75 Cost Driver Number batches made Number of orders filled Number of units made Product B 600,000 units 750 batches 200 Calculate activity rates for each of the three activities using activity-based costing (ABC) Extrusion: $304 per batch; handling: $32 per unit; packaging: $.03 per unit Extrusion: $88 per batch; handling: $32 per order; packaging: $.03 per unit Extrusion: $88 per order; handling: $32 per unit; packaging: $.03 per batch Extrusion: $418 per batch; handling: $117.33 per order; packaging: $.054 per unit Extrusion: $118.13 per batch; handling: $44 per order; packaging: $.0675 per unit 111
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