Business, 16.04.2020 23:35 faithburleson13

Leaper Corporation uses an activity-based costing system with the following three activity cost pools:

Activity Cost Pool Total Activity
Fabrication 30,000 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 $ 520,000
Depreciation 220,000
Occupancy 240,000
Total $ 980,000

The distribution of resource consumption across activity cost pools is given below:

Activity Cost Pools
Fabrication Order Processing Other Total
Wages and salaries 45% 40% 15% 100%
Depreciation 10% 40% 50% 100%
Occupancy 30% 25% 45% 100%

The activity rate for the Order Processing activity cost pool is closest to:

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

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