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  3. #9 mccaskey corporation uses an activity-based cos

#9 Mccaskey Corporation uses an activity-based costing system with...

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Accounting

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#9 Mccaskey Corporation uses an activity-based costing system with the following three activity cost pools: Activity Cost Pool Fabrication Total Activity 40,000 machine-hours Order processing Other 500 orders 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 Depreciatio Occupancy Total $420,000 100,000 120.000 $640.000 The distribution of resource consumption across activity cost pools is given below: Activity Cost Pools Other 15% 40% 25% Total 100% 100% 100% Fabrication Order Processing Wages and salaries Depreciation Occupancy 1 5% 25% 80% 45% 50% The activity rate for the Fabrication activity cost pool is closest to: $1.65 per machine-hour B. $4.00 per machine-hour C. $0.80 per machine-hour D. $2.40 per machine-hour

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