The activity rate for the Production Orders activity cost pool under activity-based costing is closest to:

A) $71.81 per order
B) $196.10 per order
C) $125.38 per order
D) $178.27 per order

Activity Rate

The measure used to allocate costs to activities based on their use of resources.

Activity Cost Pool

A grouping of all the costs related to a particular activity, used in activity-based costing to more accurately allocate costs to products or services.

Activity-Based Costing

A costing method that allocates overhead costs to specific activities, providing more accurate costs of producing specific products or services.