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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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