If a company uses Activity-Based Costing and the company places 10,000 purchase orders with $80,000 in...
If a company uses Activity-Based Costing and the company places 10,000 purchase orders with $80,000 in costs, what is the activity rate? (cost to place an order)
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$10 |
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$ 8 |
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$ 18 |
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$ 12 |
Homework Answers
Cost to place an order =
= Total cost to place order/ no. Of purchase order
=. $80000/10000
=. $8
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If a company uses Activity-Based Costing and the company places
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overhead to jobs. Heitger identified three overhead activities and
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Activity Cost Driver Amount of Driver Materials handling $55,000
Number of moves 2,500 Engineering 101,500 Number of change orders
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