Cuna 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) $905 per order
B) $630 per order
C) $1,080 per order
D) $840 per order

Question

Cuna 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) $905 per order 
B) $630 per order 
C) $1,080 per order 
D) $840 per order

Quizplus · Accepted Answer

The Answer of Cuna 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) $905 per order 
B) $630 per order 
C) $1,080 per order 
D) $840 per order

Cuna Corporation Has Provided the Following Data Concerning Its Overhead