Question Content Area

Wiley Manufacturing has two classes of distributors: JIT distributors and non-JIT distributors. The JIT distributor places small, frequent orders, and the non-JIT distributor tends to place larger, less frequent orders. Both types of distributors purchase the same product. The customer-related activities and costs for the previous quarter are as follows:

Activity	JIT Distributors	Non-JIT Distributors
Sales orders	500	30
Sales calls	30	30
Service calls	200	90
Average order size	90	1,400
Manufacturing cost/unit	$50	$50

Line Item Description	Amount
Processing sales orders	$160,000
Selling goods	155,000
Servicing goods	195,000

Calculate the activity rate for processing sales orders. (Round answer to two decimal places.)

a. $301.89 per sales order

b. $275.76 per sales order

c. $525.33 per sales order

d. $330.09 per sales order