Question
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:
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
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$1,910 per order
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$4,598 per order
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$2,335 per order
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$1,708 per order
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