question 61

61. First Dcor has analyzed the indirect costs associated with servicing its various customers in order to assess customer profitability. Results for the year appear below: Cost Pool Cost Cost Driver Quantity Processing electronic orders $400,000 Number of orders 40,000 Processing non-electronic orders 120,000 Number of orders 8,000 Picking orders 240,000 Number of different products ordered 120,000 Packaging orders 180,000 Number of items ordered 150,000 Returns 15,000 Number of returns 3,000 If all costs were assigned to customers based on the number of items ordered, what would be the cost per item ordered? A. $6.37 B. $33.20 C. $1.20 $0.16 D