The Activity Rate for the Order Filling Activity Cost Pool

question 70

Multiple Choice

The activity rate for the Order Filling activity cost pool under activity-based costing is closest to:

• A)$73.00 per order
• B)$5.00 per order
• C)$12.50 per order
• D)$22.90 per order

---

Definitions:

Factory Overhead Cost

This refers to the indirect manufacturing costs that are not directly tied to the production of a specific product, such as the cost of electricity for the manufacturing plant.

Supervisor Salaries

The compensation paid to individuals who are responsible for overseeing and managing teams or departments within an organization.

Maintenance

The process of preserving a condition or situation or the process of keeping equipment or systems operational and in good working condition.

Staffing Budget

A staffing budget outlines the financial resources allocated for hiring and compensating employees within a specific time period.