Answer:
d.$8.66 per order
Explanation:
Meester Corporation\
Given
Activity:
MHs (Machining) Orders (Order Filling)
Product M0 1,090 1,220
Product H2 9,410 1,640
Total 10,500 2,860
Activity Cost Pools
Machining Order Filling Other
Equipment depreciation 0.50 0.30 0.20
Supervisory expense 0.50 0.20 0.30
Overhead costs:
Equipment depreciation $ 78,200
Supervisory expense $ 6,500
Calculated
We find the cost of each activity by multiplying the cost driveror cost pool to the corresponding overhead.
Overhead * Activity Cost Pool= Activity Cost
Order Filling Cost Equipment depreciation= 78,200 *0.3- 23460
Order Filling Cost Supervisory expense=$ 6,500*0.2= 1300
Activity Cost
Machining Order Filling
Equipment depreciation 39100 23460
<u>Supervisory expense 3250 1300 </u>
<u>Total </u><u> 42350 24760</u>
<u />
<em>Total Order Filling $ 24760</em>
<em>Total Order 2860</em>
<em>Cost per Order= </em>$ 24760/2860=<em> 8.657= $ 8.66 per Order</em>