Vanvalkenburg, Inc., manufactures and sells two products: Product Q5 and Product

Question

Vanvalkenburg, Inc., manufactures and sells two products: Product Q5 and Product JO. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity Estimated Activity Overhead Expected Activity Activity Cost Pools MeasuresCost Labor-related Production orders Order size Product o5 Product JO DLHs orders MHS S 191,748 3, 000 300 295, 592 4,300 2,800 500 4,500 Total 5, 800 800 8,800 70,536 $ 557,876 The activity rate for the Production Orders activity cost pool under activity-based costing is closest to: Multiple Choice $63.40 per order $68.74 per order $88 17 per order $65.69 per order

Explanation / Answer

Answer is $88.17 per order Explanation Total cost of Producton orders 70536 Divide: Numbr of orders 800 Activity rate of Production order per order 88.17

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