A&W Manufacturing has implemented an activity-based costing system.For warehousing/packaging,the activity cost totals $140,400.The number of batches produced is the cost driver for this activity pool.A&W has the following information relating to its warehousing/packaging department:
Required:
Calculate the activity cost rate per batch for the warehousing/packaging department.
Definitions:
Accounts Receivable Turnover Ratio
A financial metric indicating how efficiently a company collects cash from its credit customers by measuring how often receivables are collected during a period.
Annual Interest Rate
The annual interest rate is the percentage charged on a loan or paid on an investment for a one-year period, representing the cost of borrowing or the earnings from an investment.
Net Savings
The amount left after subtracting a person's or organization's total expenses from their total income, often accumulated over time.
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