The Other Activity Cost Pool Is Used to Accumulate Costs

question 24

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:
-Pauls Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products: How much overhead cost would be assigned to Product X60R using the activity-based costing system?

• A)$5,523.58
• B)$87,070.14
• C)$115.02
• D)$7,212.38

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Definitions:

Stereotype

What occurs when attributes commonly associated with a group are assigned to an individual.

Group Attributes

Characteristics or qualities that define a group, influencing its behavior, performance, and how its members interact.

Individual

Refers to a single human being as distinct from a group, class, or family, often emphasized in contexts of personal responsibility and autonomy.

Perceptual Distortions

Misinterpretations or inaccuracies in the perception of reality, often resulting from personal biases or cognitive limitations.