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Leaper Corporation uses an activity-based costing system with the following three activity cost pools: Activity Cost Pool Total Activity Fabrication 35,000 machine-hours Order processing 150
Leaper Corporation uses an activity-based costing system with the following three activity cost pools: Activity Cost Pool Total Activity Fabrication 35,000 machine-hours Order processing 150 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 $ 470,000 Depreciation 195,000 Occupancy 215,000 Total $ 880,000 The distribution of resource consumption across activity cost pools is given below: Activity Cost Pools Fabrication Order Processing Other Total Wages and salaries 35% 30% 35% 100% Depreciation 15% 45% 40% 100% Occupancy 35% 30% 35% 100% The activity rate for the Order Processing activity cost pool is closest to:
Leaper Corporation uses an activity-based costing system with the following three activity cost pools:
Activity Cost Pool Total Activity
Fabrication 35,000 machine-hours
Order processing 150 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 $ 470,000
Depreciation 195,000
Occupancy 215,000
Total $ 880,000
The distribution of resource consumption across activity cost pools is given below:
Activity Cost Pools
Fabrication Order Processing Other Total
Wages and salaries 35% 30% 35% 100%
Depreciation 15% 45% 40% 100%
Occupancy 35% 30% 35% 100%
The activity rate for the Order Processing activity cost pool is closest to:
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Managerial Accounting
Authors: Ronald W Hilton
7th Edition
0073022853, 978-0073022857
