The Other activity cost pool does not have a measure of activity; it is used to accumulate costs of idle capacity and organization-sustaining costs. The distribution of resource consumption across activity cost pools is given below: Activity Cost Pools Order Assembly Processing Other Total Wages and salaries 35% 40% 25% 100% Depreciation 15% 45% 40% 100% Utilities 35% 30% 35% 100% The activity rate for the Order Processing activity cost pool is closest to: O a. $422 per order O b. $446 per order O c. None of the given answer is correct. Vipdaw $464 per order e. $455 per order
The Other activity cost pool does not have a measure of activity; it is used to accumulate costs of idle capacity and organization-sustaining costs. The distribution of resource consumption across activity cost pools is given below: Activity Cost Pools Order Assembly Processing Other Total Wages and salaries 35% 40% 25% 100% Depreciation 15% 45% 40% 100% Utilities 35% 30% 35% 100% The activity rate for the Order Processing activity cost pool is closest to: O a. $422 per order O b. $446 per order O c. None of the given answer is correct. Vipdaw $464 per order e. $455 per order
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The Other activity cost pool does not have a measure of activity; it is used to accumulate costs of idle
capacity and organization-sustaining costs.
The distribution of resource consumption across activity cost pools is given below:
Activity Cost Pools
Order
Assembly
Processing
Other
Total
Wages and salaries
35%
40%
25%
100%
Depreciation
15%
45%
40%
100%
Utilities
35%
30%
35%
100%
The activity rate for the Order Processing activity cost pool is closest to:
Oa.
$422 per order
O b. $446 per order
О с.
None of the given answer is correct.
Wipdaws
$464 per order
e. $455 per order

Transcribed Image Text:XYZ Co. has provided the following data concerning its overhead costs for the coming year:
Wages and salaries
$ 340,000
Depreciation
120,000
Rent
140,000
Total
$ 600,000
The company has an activity-based costing system with the following three activity cost pools and
estimated activity for the coming year:
Activity Cost Pool
Total Activity
Assembly
30,000 labor-hours
Order processing
500 orders
Other
Not applicable
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