A company idenified the following partial list of activities, costs, and activit

Question

A company idenified the following partial list of activities, costs, and activity drivers expected for the next year Calculate activity rates for each of the three activities using activity-based costing (ABC). O Extrusion: $304 per batch; handling $32 per unit; packaging: $.03 per unit Extrusion: $83 per batch handling S32 per order; packaging: S.03 per unit Extrusion. $88 per order handling S32 per unit packaging $.03 per batch Extrusion $413 per batch handling $117 33 per order; packaging; S.054 per unit. Extrusion $118.13 per batch handling S44 per order packaging: S.0675 per unit.

Explanation / Answer

Answer:Extrusion: $88 per batch, handling: $32 per order, Packaging: $.03 per unit

Extrusion costs=$83600/(200+750)=$88 per batch

Handling costs=$8800/(75+200)=$32 per order

Packaging costs=$40500/(750000+600000)=$0.03 per unit

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