The Other Activity Cost Pool Is Used to Accumulate Costs

question 42

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:
-Viren Corporation has provided the following data from its activity-based costing system: The company makes 240 units of product T91H a year,requiring a total of 550 machine-hours,90 orders,and 40 inspection-hours per year.The product's direct materials cost is $16.98 per unit and its direct labor cost is $12.09 per unit.According to the activity-based costing system,the average cost of product T91H is closest to:

• A)$79.66 per unit
• B)$90.81 per unit
• C)$29.07 per unit
• D)$75.70 per unit

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Definitions:

Five-Figure Accuracy

A measurement precision where values are accurate up to five digits.

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Solve For X

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