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Question 8 7.5 pts A company identified the following partial list of activities, costs, and activity drivers expected for the next year: Activities, drivers
Question 8 7.5 pts A company identified the following partial list of activities, costs, and activity drivers expected for the next year: Activities, drivers and costs Activity Expected Costs Cost Driver Extrusion costs $83,600 Number batches made Handling costs $8,800 Number of orders filled Packaging costs $40,500 Number of units made Details per product Description Product A Product B Production volume 750,000 units 600,000 units Batches made 200batches 750 batches Orders filled. 75 orders 200 orders Calculate activity rates for each of the three activities using activity-based costing (ABC). Extrusion: $418 per batch; handling: $117.33 per order; packaging: $0.054 per unit. Extrusion: $88 per order; handling: $32 per unit; packaging: $0.03 per batch. Extrusion: $118.13 per batch; handling: $44 per order; packaging: $0.0675 per unit. Extrusion: $304 per batch; handling: $32 per unit; packaging: $0.03 per unit. Extrusion: $88 per batch; handling: $32 per order; packaging: $0.03 per unit.
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