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Leaper Corporation uses an activity-based costing system with the following three activity cost pools: Total Activity Activity Cost Pool machine- Fabrication 35,000 hours Order processing
Leaper Corporation uses an activity-based costing system with the following three activity cost pools: Total Activity Activity Cost Pool machine- Fabrication 35,000 hours Order processing 300 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 Depreciation $420,000 170,000 190,000 Occupancy $780,000 Total The distribution of resource consumption across activity cost pools is given below: Activity Cost Pools Order Processing Fabrication other Total Wages and salaries Depreciation 30% 25% 45% 100% 20% 50% 30% 100% 40% 35% 100% 25% Occupancy The activity rate for the Order Processing activity cost pool is closest to: The activity rate for the Order Processing activity cost pool is closest to: Multiple Choice $633 per order $1,745 per order $855 per order $572 per order
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