Business, 10.06.2020 21:57 caitlyn79

Hochberg Corporation uses an activity-based costing system with the following threeactivity cost pools:Activity Cost Pool Total ActivityFabrication 30,000 machine-hoursOrder processing 300 ordersOther Not applicableThe Other activity cost pool is used to accumulate costs of idle capacity andorganization-sustaining costs. The company has provided the following data concerning its costs:Wages and salaries $340,000Depreciation 160,000Occupancy 220,000Total $720,000The distribution of resource consumption across activity cost pools is given below:Activity Cost Other TotalWages and salaries 30% 60% 10% 100%Depreciation 15% 50% 35% 100%Occupancy 15% 55% 30% 100%The activity rate for the Fabrication activity cost pool is closest to:A) $5.30 per machine-hourB) $3.60 per machine-hourC) $7.20 per machine-hourD) $4.80 per machine-hour

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