Daniele Corporation uses an activity-based costing system with the following three activity cost pools:
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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:
(please refer to the picture)
The distribution of resource consumption across activity cost pools is given below:
(please refee to the picture)
The activity rate for the Fabrication activity cost pool is closest to:
(show caculation)
Daniele Corporation Uses An Activity Based Costing System With The Following Three Activity Cost Pools Please Refer To 1 (46.19 KiB) Viewed 32 times
Q. (Required) Daniele Corporation uses an activity-based costing system with the following three activity cost pools: Activity Cost Pool Total Activity Fabrication. 50,000 machine-hours 500 orders Order processing. Other.. Not 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......... $280,000 Depreciation.. 200,000 Occupancy.. 140,000 Total. $620,000 The distribution of resource consumption across activity cost pools is given below: Activity Cost Pools Order Processing Other Total Fabrication 60% Wages and salaries........ 30% 10% 100% Depreciation..... 20% 35% 45% 100% Occupancy.... 10% 50% 40% 100% The activity rate for the Fabrication activity cost pool is closest to:
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