Reck Corporation uses activity-based costing to assign overhead costs to product

Question

Reck Corporation uses activity-based costing to assign overhead costs to products. Overhead costs have atready been alocated to the company's three activity cost pools as follows: Machining. S11700, Order Filling, $17,800, and Other, $13,500.Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data appear below Orders (Order MHs (Machining) Filling) Product P7 Product V8 6,900 3,100 200 800 The activity rate for the Order Filling activity cost pool under activity-based costing is closest to Multiple Choice $43 00 per order TOSHIBA

Explanation / Answer

$17.80 per order Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Amount Overhead cost for order filling                 17,800.00 No of orders = 200 + 800                   1,000.00 Activity rate for the order filling activity cost pool = 17800/1000                         17.80

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