Business, 20.02.2020 01:50 VamPL

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:

Answers: 3

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Leaper Corporation uses an activity-based costing system with the following three activity cost pool...