Leaper Corporation Uses an Activity-Based Costing System with the Following

question 123

Multiple Choice

Leaper Corporation uses an activity-based costing system with the following three activity cost pools: 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:
The distribution of resource consumption across activity cost pools is given below: The activity rate for the Order Processing activity cost pool is closest to:

• A) $1,485 per order
• B) $1,540 per order
• C) $1,465 per order
• D) $1,320 per order

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Definitions:

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