The Other Activity Cost Pool Is Used to Accumulate Costs

question 54

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:
-Whiting 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 Assembly activity cost pool is closest to:

• A)$4.30 per labor-hour
• B)$7.00 per labor-hour
• C)$8.60 per labor-hour
• D)$12.90 per labor-hour

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Definitions:

Mispriced Stocks

Stocks whose market prices do not accurately reflect their intrinsic values, potentially due to market inefficiencies or information asymmetry.

Momentum

In finance, refers to the tendency of an investment to continue moving in its current direction, either up or down, based on recent performance.

Reversal Patterns

Technical analysis term referring to signals indicating a potential change in a security's price direction.

Semistrong Form

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