Meester Corporation Has an Activity-Based Costing System with Three Activity

question 96

Multiple Choice

Meester Corporation has an activity-based costing system with three activity cost pools--Machining, Order Filling, and Other. In the first stage allocations, costs in the two overhead accounts, equipment depreciation and supervisory expense, are allocated to three activity cost pools based on resource consumption. Data used in the first stage allocations follow: Distribution of Resource Consumption Across Activity Cost Pools:
Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow:Activity:
The activity rate for the Order Filling activity cost pool under activity-based costing is closest to:

• A) $11.08 per order
• B) $8.51 per order
• C) $8.08 per order
• D) $110.80 per order

---

Definitions:

Parliament

A supreme legislative body in a parliamentary system, composed of elected or appointed members who represent the populace.

Libel

A false statement made in written form or published material that damages a person's reputation.

Public Figure

A public figure is an individual of great public interest or fame, such as a politician, celebrity, or business leader, who is subject to less privacy and different legal standards concerning defamation.

Intrusion

An act of entering or encroaching upon a place without permission, often violating privacy.