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F Co operates an activity based costing system to attribute its overhead costs to cost objects. In its budget for the year ending 30 June 20X2, the company expected to place a total of 3,250 purchase orders at a total cost of $97,500. This activity and its related costs were budgeted to occur at a constant rate throughout the budget year, which is divided into 13 four-week periods. During control period 10, a total of 267 purchase orders were placed at a cost of $10,146. What was the under recovery of these costs for control period 10? A. $2,646. B. $2,136. C. Cannot be determined from the information provided. D. $34,398. |