The Other Activity Cost Pool Is Used to Accumulate Costs

question 13

Multiple Choice

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.$1,050 per order
B.$1,680 per order
C.$1,190 per order
<underLine>D.</underLine> $1,350 per order
Total Order Processing Cost:
-Emmette Corporation uses an activity-based costing system with three activity cost pools.The company has provided the following data concerning its costs and its activity based costing system: How much cost,in total,would be allocated in the first-stage allocation to the Setting Up activity cost pool?

• A)$325,000
• B)$312,000
• C)$333,000
• D)$429,000

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Definitions:

Fixed Assets

Assets of a long-lasting nature involved in business operations, which are not anticipated to be expended or turned into cash quickly.

Current Assets

Items of value that are projected to be turned into cash, sold off, or consumed either within a year or throughout the length of the business's normal operational cycle, whichever timeframe is greater.

Net Working Capital

The difference between a company's current assets and its current liabilities, indicating its ability to meet short-term obligations.

Office Equipment

Refers to the assets purchased for use in the operation of a business, including computers, printers, and furniture.