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Leaper Corporation uses an activity-based costing system with the following three activity cost pools: Activity Cost Pool Fabrication Order processing Other Total Activity machine- 50,000
Leaper Corporation uses an activity-based costing system with the following three activity cost pools: Activity Cost Pool Fabrication Order processing Other Total Activity machine- 50,000 hours 300 orders 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 Occupancy Total $500,000 210,000 230,000 $940,000 The distribution of resource consumption across activity cost pools is given below: Wages and salaries Depreciation Occupancy Fabrication 35% 15% 35% Activity Cost Pools Order Processing 30% 45% 30% Other 35% 40% 35% Total 100% 100% 100% The activity rate for the Order Processing activity cost pool is closest to: Multiple Choice $815 per order $2,088 per order S1,045 per order S730 per order
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