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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:
-Laib Corporation uses an activity-based costing system with three activity cost pools.The company has provided the following data concerning its costs: The distribution of resource consumption across the three activity cost pools is given below:
How much cost,in total,would be allocated in the first-stage allocation to the Other activity cost pool?
Internal Business Processes
Activities or operations within a company that contribute to the business's goals, often focusing on efficiency and productivity.
Strategy
A high-level plan or set of actions designed to achieve long-term or overall aims and objectives, often within a competitive environment or to solve a problem.
Support Activities
Functions or operations that help make a business's primary activities more efficient, such as procurement, technology development, human resource management, and firm infrastructure.
Create Value
The process of increasing the worth of products, services or businesses through improvement or innovation.
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