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

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

Quizplus · Accepted Answer

Allocations to the Order Processing activity cost pool:
 11eaa48f_7b8b_cf08_9e4a_57e23784ea4e_TB2485_00 Order Processing: $280,000 F1F1F1S1F1F1F10 500 orders = $560 per order

Christiansen Corporation Uses an Activity-Based Costing System with the Following