Question: * The rate per activity is calculated for order taking, and then multiplied by the actual number of orders incurred by Tucker. Crane rents DVDs
* The rate per activity is calculated for order taking, and then multiplied by the actual number of orders incurred by Tucker. Crane rents DVDs that are mailed out to customers upon demand. Crane has identified three activities involved in getting the videos to its customers. Information on those activities for the month of July follows: Cost Pools Order taking costs Estimated Overhead Cost $20000 Expected Use of Cost Drivers 500000 orders Technology support Cost Drivers Number of orders Number of minutes Number of DVDs 11000 233000 minutes Picking and shipping costs 36915 330000 DVDs During July, the Tucker family placed 12 orders consisting of 15 DVDs. Tucker required 5 minutes of tech support. Customers pay $5 per month to rent unlimited DVDs. Using ABC, how much overhead is applied to the Tucker family account for order taking costs? $0.48 $1.68 $1.08 $0.60
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