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Daniele 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 500
Daniele 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 500 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: Cost Data Wages and salaries $280,000 Depreciation $200,000 Occupancy $140,000 Total $620,000 The distribution of resource consumption across activity cost pools is given below: Activity Cost Pools Fabrication Order Processing Other Total Wages and salaries 60% 30% 10% 100% Depreciation 20% 35% 45% 100% Occupancy 10% 50% 40% 100% The activity rate for the Fabrication activity cost pool is closest to
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