Daniele 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 Fabrication activity cost pool is closest to:
A) $3.72 per machine-hour
B) $4.44 per machine-hour
C) $7.44 per machine-hour
D) $1.24 per machine-hour

Question

Daniele 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 Fabrication activity cost pool is closest to: 
A) $3.72 per machine-hour 
B) $4.44 per machine-hour 
C) $7.44 per machine-hour 
D) $1.24 per machine-hour

Quizplus · Accepted Answer

The Answer of Daniele 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 Fabrication activity cost pool is closest to: 
A) $3.72 per machine-hour 
B) $4.44 per machine-hour 
C) $7.44 per machine-hour 
D) $1.24 per machine-hour

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