Have-A-Blast Inc makes two products, Rainbows and Ribbons, and are using an Activity-Based-Costing approach to allocating their $1,580,000 in expected annual overhead. Cott's overhead can be identified with three activities: order processing ($700,000), assembly ($500,000) and testing ($380,000). These activities are driven by number of orders processed, machine hours, and number of tests respectively. Data relevant to these activities follow: Legend Sunshine Orders processed 170 250 Machine hours 100 350 Tests 80 100 What is the overhead activity rate per orders processed?

Answer rating: 100% (QA)

Divide the total overhead cost for order processing by the total number of orders processed as sh... View the full answer