TB MC Qu. 7-55 Leaper Corporation uses an activity-based costing ...

Leaper Corporation uses an activity-based costing system with the following three activity cost pools:

Activity Cost Pool	Total Activity
Fabrication	45,000	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	$	550,000
Depreciation		235,000
Occupancy		255,000
Total	$	1,040,000

The distribution of resource consumption across activity cost pools is given below:

	Activity Cost Pools
	Fabrication	Order Processing		Other	Total
Wages and salaries	40%	35%		25%	100%
Depreciation	10%	40%		50%	100%
Occupancy	30%	25%		45%	100%

The activity rate for the Order Processing activity cost pool is closest to:

Garrison 16e Rechecks 2019-07-30

Multiple Choice

• $1,910 per order

• $4,598 per order

• $2,335 per order

• $1,708 per order