Business, 02.04.2021 18:50, Ariellyvz9103
Leaper Corporation uses an activity-based costing system with the following three activity cost pools: Activity Cost Pool Total Activity Fabrication 50,000 machine-hours Order processing 200 orders Other Not applicable The Other activity cost pool is used to accumulate costs of idle capacity and organization-sustaining costs. The company has provided the following data concerning its costs: Wages and salaries $ 450,000 Depreciation 185,000 Occupancy 205,000 Total $ 840,000 The distribution of resource consumption across activity cost pools is given below: Activity Cost Pools Total Fabrication Order Processing Other Wages and salaries 35% 30% 35% 100% Depreciation 20% 50% 30% 100% Occupancy 35% 30% 35% 100% The activity rate for the Order Processing activity cost pool is closest to:.
A. $2,755 per order
B. $1,445 per order
C. $1,138 per order
D. $983 per order
Answers: 3
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Leaper Corporation uses an activity-based costing system with the following three activity cost pool...
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