Zang Manufacturing Company Manufactures Two Products (A and B) What Is the Allocation Rate Per Order Using ABC?
A)£10,000

Multiple Choice

Zang Manufacturing Company manufactures two products (A and B) . The overhead costs (£58,000) have been divided into three cost pools that use the following activity cost drivers: $\begin{array}{cccc}&&\text { Number of Labour }\\ \underline{\text { Product }}&\underline{\text { Number of Orders }} & \underline{\text { Transactions }} & \underline{ \text { Labour Hours }}\\\text { A } & 15 & 50 & 500 \\\text {B }& 10 & 150 & 2,000 \\& & & \\\text { Cost per pool } & £ 10,000 & £ 8,000 & £ 40,000\end{array}$
What is the allocation rate per order using ABC?

A) £10,000
B) £2,320
C) £400
D) £58,000