Danielle Corporation uses an activity-based costing system with the following th
ID: 2386015 • Letter: D
Question
Danielle Corporation uses an activity-based costing system with the following three activity cost pools:Activity cost pool Total activity
Fabrication 50,000 machine hours
Order processing 500 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 data concerning its costs:
Cost data
Wages and salaries $280,000
Depreciation $200,000
Occupancy $140,000
Total $620,000
Activity Cost Pools
Wages and salaries 60% 30% 10% 100%
Depreciation 20% 35% 45% 100%
Occupancy 10% 50% 40% 100%
Fabrication Processing Other Total
The activity rate for the fabrication activity cost pool is closest to _____ per machine hour.
A.$3.72
B.$4.44
C.$1.24
D.$7.44
***PLEASE SHOW HOW to get this answer***
Explanation / Answer
net = $222000 = 222,000/50000= $.4.44 PER-HOUR
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.