Company X uses an activity-based costing system with the following three activity cost pools: Activity Cost Pool Total Activity Fabrication. . 40,000 machine-hours Order processing . 200 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 . $/360,000 Depreciation. 140,000 Occupancy. 200,000 Total.. $/700,000 The distribution of resource consumption across activity cost pools is given below: Activity Cost Pools Fabrication Order Processing Other Total Wages and salaries.. 35% 40% 25% 100% Depreciation. 5% 55% 40% 100% Occupancy. 30% 45% 25% 100% The activity rate for the Fabrication Activity cost pool is closest to:

Company X uses an activity-based costing system with the following three activity cost pools: Activity Cost Pool Total Activity Fabrication. . 40,000 machine-hours Order processing . 200 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 . $/360,000 Depreciation. 140,000 Occupancy. 200,000 Total.. $/700,000 The distribution of resource consumption across activity cost pools is given below: Activity Cost Pools Fabrication Order Processing Other Total Wages and salaries.. 35% 40% 25% 100% Depreciation. 5% 55% 40% 100% Occupancy. 30% 45% 25% 100% The activity rate for the Fabrication Activity cost pool is closest to:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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