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Leaper Corporation uses an activity-based costing system with the following three activity cost pools:

Fabrication: 40,000 machine-hours
Order processing: 200 orders
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 manufacturing overhead cost data concerning the Order Processing activity:

Wages and salaries: $144,000
Depreciation: $77,000
Occupancy: $72,000
Total: $293,000

The activity rate for the Order Processing activity cost pool is closest to:

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M969201

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