Quality Carvings manufactures furniture. They have decided to develop an activity-based costing system. Shown below is each activity, its cost and the activity driver used to assign these costs to products.
Under an activity-based costing system, what is the activity cost per unit of activity driver for processing orders?

A) $93.33
B) $25.20
C) $25.40
D) $62.00

Activity-Based Costing System

A costing methodology that assigns overhead and indirect costs to specific activities related to the production of goods or services, enhancing the accuracy of cost information.

Activity Cost

The expense associated with a specific business operation or activity, often identified in activity-based costing.

Processing Orders

Refers to the sequence of steps undertaken by a business to fulfill customer purchase requests efficiently.