Question

Ontario Company uses activity based costing. There are three activities required for each order: order taking, order filling, and shipping. Order taking clerks are paid $1,000 per week and work 36 hours per week. Order filling clerks are paid $900 per week and work 35 hours per week. Shipping clerks are paid $800 per week and work 36 hours per week. A recent order required 0.5 hours of order taking time, 1 hour of order filling time, and 0.75 hours of shipping time. The selling price of the materials in the order was $90. Which of the following is the closest to the margin on this order?

a. $33.73

b. $56.27

c. $83.44

d. $90.00

answer is A, how to solve it?

Answer 1