The Activity Rate for the Order Filling Activity Cost Pool

question 118

Multiple Choice

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

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Definitions:

Manufacturer Orders

Requests or purchase orders placed by businesses to manufacturers for the production and supply of goods.

Milk Run

A routing strategy where a single transportation vehicle visits multiple locations on a predefined route to pick up or deliver goods, maximizing efficiency and reducing transportation costs.

Truckload Shipment

The transportation of goods where the quantity is sufficient to fill an entire truck, maximizing the vehicle's cargo capacity.

Less Than Truckload

A shipping method for transporting small freight loads that do not require the full space of a truck.