Leaper Corporation uses an activity-based costing system with the following three activity cost pools: Activity Cost Pool Total Activity Fabrication 40,000 machine-hours. 200 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 Depreciation Occupancy Total $360,000 140,000 160,000 $ 660,000 The distribution of resource consumption across activity cost pools is given below: Activity Cost Pools Fabricating Order Processing Other 35% 25% 5% 40% 30% 25% Wages and salaries. Depreciation Occupancy The activity rate for the Order Processing activity cost pool is closest to: 40% 55% 45% Total 100% 100% 100%

Leaper Corporation uses an activity-based costing system with the following three activity cost pools: Activity Cost Pool Total Activity Fabrication 40,000 machine-hours. 200 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 Depreciation Occupancy Total $360,000 140,000 160,000 $ 660,000 The distribution of resource consumption across activity cost pools is given below: Activity Cost Pools Fabricating Order Processing Other 35% 25% 5% 40% 30% 25% Wages and salaries. Depreciation Occupancy The activity rate for the Order Processing activity cost pool is closest to: 40% 55% 45% Total 100% 100% 100%

Name: Multiple ChoiceOOO$1,485 per order$1,540 per order$1,465 per order$1,
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Description: Multiple ChoiceOOO$1,485 per order$1,540 per order$1,465 per order$1,320 per order Leaper Corporation uses an activity-based costing system with the following three activity cost pools:Activity Cost PoolTotal ActivityFabrication40,000 machine-hours2

Quickbooks Online Accounting

3rd Edition

ISBN:9780357391693

Author:Owen

Publisher:Owen

Chapter5: Operating Activities: Purchases And Cash Payments

Section: Chapter Questions

Problem 2.10C

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