A company identified the following partial list of activities, costs, and activity drivers expected for the next year.

\begin{array}{l}\begin{array} { | l | c | c | } \hline \text { Activity } & \text { Expected Costs } & \text { Cost Driver } \\\hline \text { Extrusion Costs } & \$ 83,600 & \text { Number batches made } \\\hline \text { Handling Costs } & \$ 8,800 & \text { Number of orders filled } \\\hline \text { Packaging Costs } & \$ 40,500 & \text { Number of units made } \\\hline\\\hline & \text { Product A } & \text { Product B } \\\hline \text { Production volume } & 750,000 \text { units } & 600,000 \text { units } \\\hline \text { Batches made } & 200 \text { batches } & 750 \text { batches } \\\hline \text { Orders filled } & 75 & 200 \\\hline\end{array}\end{array}

Calculate activity rates for each of the three activities using activity-based costing (ABC).
A) Extrusion: $304 per batch; Handling: $32 per unit; Packaging: $.03 per unit.
B) Extrusion: $88 per batch; Handling: $32 per order; Packaging: $.03 per unit.
C) Extrusion: $88 per order; Handling: $32 per unit; Packaging: $.03 per batch.
D) Extrusion: $418 per batch; Handling: $117.33 per order; Packaging: $.054 per unit.
E) Extrusion: $118.13 per batch; Handling: $44 per order; Packaging: $.0675 per unit.

A Company Estimates That Costs for the Next Year Will

True/False

Correct Answer:VerifiedUnlock this answer nowGet Access to more Verified Answers free of chargeAccess For Free

Correct Answer:
Verified
Unlock this answer now
Get Access to more Verified Answers free of charge