Tandem Company Manufactures Two Products (D and F) What Is the Allocation Rate Per Packing Order Using Activity-Based

question 149

Multiple Choice

Tandem Company manufactures two products (D and F) . The overhead costs ($84,000) have been divided into three cost pools that use the following activity drivers: $\begin{array}{cccc}\text { Product } & \text { Number of Setups} & \text { Machine Hours} & \text { Packing Orders }\\\hline \mathrm{D} & 10 & 500 & 75 \\\text { F } & 10 & 2,000 & 175 \\\text { Cost perpool } & \$ 11,000 & \$ 60,000 & \$ 18,750\end{array}$ What is the allocation rate per packing order using activity-based costing?

• A)$18,750
• B)$ 75
• C)$ 1,875
• D)$ 250

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