Karla's bakery uses activity-based costing. Karla has several activities that she tracks: Dollars Activity Mixing $6,000 150 mixing hours Baking $5,000 750 baked goods Packaging $2,000 250 orders What cost would Karla estimate for 1 order of 3 bakes goods if she estimates that it will take 5 mixing hours? a. $52 b. $228 c. $434 d. $112

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter3: Cost Behavior
Section: Chapter Questions
Problem 21E: Sweet Dreams Bakery was started five years ago by Della Fontera who was known for her breads, sweet...
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Karla's bakery uses activity-based costing. Karla has several activities that she tracks:
Dollars
Activity
Mixing
$6,000 150 mixing hours
Baking
$5,000
750 baked goods
Packaging
$2,000
250 orders
What cost would Karla estimate for 1 order of 3 bakes goods if she estimates that it will
take 5 mixing hours?
a. $52
b. $228
c. $434
d. $112
Transcribed Image Text:Karla's bakery uses activity-based costing. Karla has several activities that she tracks: Dollars Activity Mixing $6,000 150 mixing hours Baking $5,000 750 baked goods Packaging $2,000 250 orders What cost would Karla estimate for 1 order of 3 bakes goods if she estimates that it will take 5 mixing hours? a. $52 b. $228 c. $434 d. $112
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