XYZ Co has an activity-based costing system with three activity cost pools--Fixing, Cutting, and Other. In the first stage allocations, costs in the two overhead accounts, equipment depreciation and factory expense, are allocated to three activity cost pools based on resource consumption. Data used in the first stage allocations follow:

Overhead costs:

Factory depreciation

$79,600

Indirect labor

$5,000

Distribution of Resource Consumption Across Activity Cost Pools:

Activity Cost Pools

Fixing

Cutting

Other

Equipment depreciation

0.50

0.30

0.20

Factory expense

0.30

0.50

0.20

Fixing costs are assigned to products using machine-hours (MHs) and Cutting costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow:

Machine-hours (Fixing)

Orders (Cutting)

Product A

1,550

1,070

Product B

9,700

1,630

The activity rate for the Cutting activity cost pool under activity-based costing is closest to (Round your intermediate calculations to 2 decimal place)

Select one:

a. $9.77 per order

b. $94.00 per order

c. none of the given answer.

d. $6.83 per order

e. $9.40 per order

Table 1 Activity Cost Pool Assembly Processing orders Inspection Total Cost $942.480 $ 5,050 $ 126,854 Total Activity 66,000 machine-hours 1,800 orders 1.820 inspection-hours Activity Cost Pool Assembly Processing orders Inspection Table 2 Total Cost Total Activity $1,114,920 57,000 machine-hours 5 47,016 1.800 orders 5 107.328 1.560 inspection hours Table 3 Costs: Factory Rent Factory Depreciation Factory Utilities Total $ 373.000 150,000 250,000 S 773,000 Distribution of resource consumption: Total Factory Rent Factory Depreciation Factory Utilities Activity Cost Pools Fixing Cutting Polishing 60% 2017 389 459 20% 20 100% 100% 100%