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A company is considering implementing an activity-based costing system with the following three activity cost pools:


Activity Cost Pool Total Activity
Fabrication 10,000 machine-hours
Order processing 800 orders
Other Not applicable
The Other activity cost pool will be used to accumulate costs of idle capacity and organization-sustaining costs. The company has provided the following data concerning its costs:
Wages and salaries $320,000
Depreciation 220,000
Occupancy 120,000
Total $660,000
The distribution of resource consumption across activity cost pools is given below:
Activity Cost Pools
Fabrication Order Processing Other Total
Wages and salaries 20% 65% 15% 100%
Depreciation 15% 35% 50% 100%
Occupancy 5% 70% 25% 100%


what the activity rate for the Fabrication activity cost pool is closest to:

Accounting Basics, Accounting

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