The Other Activity Cost Pool Is Used to Accumulate Costs

question 2

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:
-Marton Corporation has provided the following data from its activity-based costing accounting system: The activity rate for the "designing products" activity cost pool is closest to:

• A)$124 per product design hour
• B)$181 per product design hour
• C)$55 per product design hour
• D)$1,526,916 per product design hour

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Definitions:

Energy Prices

The cost assigned to energy sources, including electricity, natural gas, oil, and renewables, which fluctuate based on demand, supply, geopolitical dynamics, and environmental policies.

Health Insurance

A type of insurance coverage that pays for medical and surgical expenses incurred by the insured.

Governmental Paperwork

Documents required by government agencies that businesses need to fill out and submit for regulatory, tax, or legal purposes.

Asset-Based

Asset-based refers to a type of business financing or lending that uses the company's assets as collateral to secure the loan.