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McCaskey Corporation uses an activity-based costing system with the following three activity cost pools: Activity Cost Pool Total Activity machine- Fabrication 10,000 hours Order processing
McCaskey Corporation uses an activity-based costing system with the following three activity cost pools: Activity Cost Pool Total Activity machine- Fabrication 10,000 hours Order processing Other 125 orders N/A 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 Occupancy Total 174,000 161,000 $805,000 The distribution of resource consumption across activity cost pools is given below: Activity Cost Pools Order Fabrication Processing Other Total Wages and salaries 20% 70% 10% 100% Depreciation 5% 30% 65% 100% Occupancy 10% 60% 30% 100% The activity rate for the Fabrication activity cost pool is closest to
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