The Other Activity Cost Pool Is Used to Accumulate Costs

question 52

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:
-Trauscht Corporation has provided the following data from its activity-based costing system: The company makes 340 units of product P23F a year,requiring a total of 710 machine-hours,80 orders,and 40 inspection-hours per year.The product's direct materials cost is $40.05 per unit and its direct labor cost is $14.35 per unit.The product sells for $121.90 per unit. According to the activity-based costing system,the product margin for product P23F is:

• A)$9,223.20
• B)$7,853.60
• C)$5,401.60
• D)$22,950.00