Answer:
= $162 per meeting hour
Explanation:
Under activity-based costing method, overheads are charged to units produced using cost drivers unlike the traditional absorption costing where overhead are charged using volume-related bases only like direct labor hours.
A cost driver is the most important factor that causes a change in the amount of activity overhead. For example, an appropriate cost driver for allocating Meetings with clients overheads would be meeting hours.
Overheads Activity rate = Activity overhead / number of cost drivers
Activity rate for meeting with clients
= Activity overheads/ total meeting hours
Meeting with clients overhead = $1,184,706
Total meeting hours = 7,313 hours
= $ $1,184,706/ 7,313 hours
= $162 per meeting hour
