A company identified the following partial list of activities, costs, and activity drivers expected for the next year:ActivityExpected CostsCost DriverExtrusion costs$83,600 Number batches madeHandling costs$8,800 Number of orders filledPackaging costs$40,500 Number of units made Product AProduct BProduction volume 750,000units 600,000unitsBatches made 200batches 750batchesOrders filled 75 200 Calculate activity rates for each of the three activities using activity-based costing (ABC).
A. Extrusion: $88 per order; handling: $32 per unit; packaging: $0.03 per batch.
B. Extrusion: $418 per batch; handling: $117.33 per order; packaging: $0.054 per unit.
C. Extrusion: $304 per batch; handling: $32 per unit; packaging: $0.03 per unit.
D. Extrusion: $88 per batch; handling: $32 per order; packaging: $0.03 per unit.
E. Extrusion: $118.13 per batch; handling: $44 per order; packaging: $0.0675 per unit.
Answer: D
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