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

question 5

Multiple Choice

Christiansen 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)$676 per order
• B)$780 per order
• C)$560 per order
• D)$312 per order

---

Definitions:

Relative Frequencies

The ratio of the number of times a particular value occurs to the total number of observations, often expressed as a percentage.

Histogram

A graphical representation of the distribution of numerical data, displayed as bars representing the frequency of data within certain ranges.

Histogram

A graphical representation of the distribution of numerical data, showing the number of data points that fall within each of a series of specified ranges.

Histogram

A graphical display of data using bars of different heights, where each bar groups numbers into ranges and taller bars show that more data falls in that range.