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)
|
$10 |
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$ 8 |
||
|
$ 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
Add Answer to:
If a company uses Activity-Based Costing and the company places
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Doede Corporation uses activity-based costing to compute product margins. In the first stage, the activity-based costing system allocates two overhead accounts--equipment depreciation and supervisory expense--to three activity cost pools--Machining, Order Filling, and Other--based on resource consumption. Data to perform these allocations appear below: Overhead costs: Equipment depreciation $ 110,000 Supervisory expense $ 6,900 Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools Machining Order Filling Other Equipment depreciation 0.40 0.30 0.30 Supervisory expense 0.40 0.20 0.40 In the...
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Number of moves 2,500 Engineering 101,500 Number of change orders
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