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4 Hochberg Corporation uses an activity-based costing system with the following three activity cost pools:
4 Hochberg Corporation uses an activity-based costing system with the following three activity cost pools:
Activity Cost PoolTotal ActivityFabrication10,000machine-hoursOrder processing125ordersOtherNot applicable
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:
Wages and salaries$466,000 Depreciation 192,000 Occupancy 217,000 Total$875,000
The distribution of resource consumption across activity cost pools is given below:
Activity Cost Pools FabricatingOrder ProcessingOtherTotalWages and salaries15%80%5%100%Depreciation10%30%60%100%Occupancy10%70%20%100%
The activity rate for the Fabrication activity cost pool is closest to:
Noreen 4e Rechecks 2017-24-03
