Schwering Corporation Uses Activity-Based Costing to Assign Overhead Costs to Products.Overhead

question 60

Multiple Choice

Schwering Corporation uses activity-based costing to assign overhead costs to products.Overhead costs have already been allocated to the company's three activity cost pools as follows: Machining, $20, 800;Order Filling, $30, 400;and Other, $48, 800.Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders.The costs in the Other activity cost pool are not assigned to products.Activity data appear below: The activity rate for the Order Filling activity cost pool under activity-based costing is closest to:

• A)$30.40 per order
• B)$100.00 per order
• C)$4.00 per order
• D)$20.00 per order