6.. The Other activity cost pool does not have a measure of activity; it is used to accumulate costs of idlecapacity and organization-sustaining costs.The distribution of resource consumption across activity cost pools is given below:Activity Cost PoolsOrderAssemblyProcessingOtherTotalWages and salaries35%40%25%100%Depreciation15%45%40%100%Utilities35%30%35%100%The activity rate for the Order Processing activity cost pool is closest to:Oa.$422 per orderO b. $446 per orderО с.None of the given answer is correct.Wipdaws$464 per ordere. $455 per order XYZ Co. has provided the following data concerning its overhead costs for the coming year:Wages and salaries$ 340,000Depreciation120,000Rent140,000Total$ 600,000The company has an activity-based costing system with the following three activity cost pools andestimated activity for the coming year:Activity Cost PoolTotal ActivityAssembly30,000 labor-hoursOrder processing500 ordersOtherNot applicable

The process of allocating overheads to respective activities is called activity based costing

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

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 25E: Cushing, Inc., costs products using a normal costing system. The following data are available for...

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Multiple Choice $685 per order $675 per order $544 per order $665 per order
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