Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. mccaskey corporation uses an activity-based costin

McCaskey Corporation uses an activity-based costing system with the following three activity cost pools: ...

60.1K

Verified Solution

Question

Accounting

McCaskey 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 625 orders
Other N/A

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 $461,000
Depreciation 123,000
Occupancy 207,000
Total

$791,000

The distribution of resource consumption across activity cost pools is given below:

Activity Cost Pools
Fabrication Order Processing Other Total
Wages and salaries 15% 65% 20% 100%
Depreciation 15% 40% 45% 100%
Occupancy 20% 75% 5% 100%

The activity rate for the Fabrication activity cost pool is closest to:

$2.58 per machine-hour

$0.88 per machine-hour

$3.96 per machine-hour

$2.48 per machine-hour

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students