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Super F manufactures furniture. They have decided to develop an activity-based costing system. Shown below is each activity, its cost and the activity driver used
Super F 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 cost | Activity Driver | Quantity of Activity Driver |
---|---|---|---|
Process orders | $37 800 | #orders | 1500 |
Make patterns | $140 000 | #items made | 8000 |
Carving | $248 000 | #hours taken | 4000 |
Finishing | $186 200 | #items made | 7000 |
Under an activity-based costing system, what is the activity cost per unit of activity driver for processing orders?
Select one:
$62.00
$25.40
$93.33
$25.20
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