Lippincott 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) $1,050 per order
B) $1,680 per order
C) $1,190 per order
D) $1,350 per order

Question

Lippincott 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) $1,050 per order 
B) $1,680 per order 
C) $1,190 per order 
D) $1,350 per order

Quizplus · Accepted Answer

The Answer of Lippincott 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) $1,050 per order 
B) $1,680 per order 
C) $1,190 per order 
D) $1,350 per order

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