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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 250 orders $2,000 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

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 250 orders $2,000 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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 250 orders $2,000 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 250 orders $2,000 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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