Laguna Corporation Has Provided the Following Data Concerning Its Overhead

question 132

Multiple Choice

Laguna Corporation has provided the following data concerning its overhead costs for the coming year: The company has an activity-based costing system with the following three activity cost pools and estimated activity for the coming year: The Other activity cost pool does not have a measure of activity; it is used to accumulate costs of idle capacity and organization-sustaining 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)$415 per order
• B)$405 per order
• C)$495 per order
• D)$270 per order

---

Definitions:

Civilly Liable

A term referring to the responsibility of a person to compensate for losses or damages caused by their actions in a civil lawsuit.

Potential Liability

Potential liability refers to the possibility that a person or entity may be held legally responsible for actions or consequences in the future.

Third Party

An entity or individual not directly involved in a legal contract or agreement, but that may be affected by it or participate in certain transactions.

Accountant's Work

Professional activities undertaken by an accountant, including auditing, financial reporting, and tax planning.