Tadlock Corporation has provided the following data concerning its overhead costs for the coming year: The company has an activity-based costing system with the following three activity cost pools and estimated activity for the coming year: The Other activity cost pool does not have a measure of activity;it is used to accumulate costs of idle capacity and organization-sustaining 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)$420 per order
B)$520 per order
C)$490 per order
D)$780 per order

Question

Tadlock Corporation has provided the following data concerning its overhead costs for the coming year:   The company has an activity-based costing system with the following three activity cost pools and estimated activity for the coming year:  The Other activity cost pool does not have a measure of activity;it is used to accumulate costs of idle capacity and organization-sustaining 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)$420 per order 
B)$520 per order 
C)$490 per order 
D)$780 per order

Quizplus · Accepted Answer

Allocations to the Order Processing activity cost pool:
 11eaa48f_7b8c_6b50_9e4a_6db691f911bf_TB2485_00 Order Processing: $294,000 F1F1F1S1F1F1F10 600 orders = $490 per order

Tadlock Corporation Has Provided the Following Data Concerning Its Overhead