Laguna 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)$415 per order
B)$405 per order
C)$495 per order
D)$270 per order

Question

Laguna 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)$415 per order 
B)$405 per order 
C)$495 per order 
D)$270 per order

Quizplus · Accepted Answer

The Answer of Laguna 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)$415 per order 
B)$405 per order 
C)$495 per order 
D)$270 per order

Laguna Corporation Has Provided the Following Data Concerning Its Overhead