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Christiansen Corporation uses an activity-based costing system with the followin

ID: 2362493 • Letter: C

Question

Christiansen Corporation uses an activity-based costing system with the following three activity cost pools: 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: The distribution of resource consumption across activity cost pools is given below: The activity rate for the Order Processing activity cost pool is closest to: A) $676 per order B) $780 per order C) $560 per order D) $312 per order

Explanation / Answer

C) $560 per order

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