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Andiamo Manufacturing produces two types of tablets: basic and deluxe. The tablets are produced using one continuous process. Four activities have been identified: machining, setups, receiving, and packing. Resource drivers have been used to assign costs to each activity. The manufacturing overhead activities, their costs, and the other related data are as follows:
Product Machine Hours Setups Receiving Orders Packing Orders
basic 20,000 200 100 800
deluxe 20,000 500 400 4,000
Costs $80,000 $60,000 $10,000 $30,000
Question 1: What is the activity rate for packing that is based on packing orders?
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