Visual Manufacturing produces two types of cameras: 35mm and digital. The cameras are produced using one continuous process. Four activities involved in the production have been identified as: machining, setups, receiving, and packing. Resource drivers have been used to assign costs to each activity. The overhead activities, their costs, and the other related data are as follows: Product Machine Hours Setups Receiving Orders Packing Orders 35mm 10,000 100 200 800 Digital 10,000 250 800 4,000 Costs $240,000 $160,000 $32,000 $96,000 Calculate an activity rate for packing based on packing orders. a.$24.00 per packing order b.$18.00 per packing order c.$2.00 per packing order d.$120.00 per packing order e.$20 per packing order

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Visual Manufacturing produces two types of cameras: 35mm and digital. The cameras are produced using one continuous process. Four activities involved in the production have been identified as: machining, setups, receiving, and packing. Resource drivers have been used to assign costs to each activity. The overhead activities, their costs, and the other related data are as follows:

Product Machine Hours Setups Receiving Orders Packing Orders
35mm 10,000 100 200 800
Digital 10,000 250 800 4,000
Costs $240,000 $160,000 $32,000 $96,000

Calculate an activity rate for packing based on packing orders.
a.$24.00 per packing order
b.$18.00 per packing order
c.$2.00 per packing order
d.$120.00 per packing order
e.$20 per packing order
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