Nissex Manufacturing Company Manufactures Two Products (I and II) What Is the Allocation Rate Per Order Using Activity-Based Costing

question 37

Multiple Choice

Nissex Manufacturing Company manufactures two products (I and II) . The overhead costs ($79,000) have been divided into three cost pools that use the following activity drivers: $\begin{array}{lccc} &&\text { Number of Labor }\\\text { Product } & \text {Number of Orders } & \text { Transactions } &\text { Labor Hours }\\\hline I& 20 & 60 & 650 \\II & 12 & 180 & 2,500 \\\text { Cost per pool } & \$ 14,000 & \$ 10,000 & \$ 55,000\end{array}$ What is the allocation rate per order using activity-based costing (ABC) system? (Round the answer to two decimal places.)

• A)$41.67
• B)$437.50
• C)$1,718.75
• D)$17.46

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