McCaskey Corporation uses an activity-based costing system with the following threeactivity cost pools:Activity Cost PoolTotal Activitymachine-40,000 hours500 ordersFabricationOrder processingSt54OtherN/AThe Other activity cost pool is used to accumulate costs of idle capacity andorganization-sustaining costs.The company has provided the following data concerning its costs:Wages and salaries $469,000DepreciationOccupancy191,000120,000Total$780,000The distribution of resource consumption across activity cost pools is given below.Activity Cost PoolsOrderFabrication Processing OtherTotalWages and salaries20%60%20%100%DepreciationOccupancy20%25%55%100%20%45%35%100%The activity rate for the Fabrication activity cost pool is closest to:Multiple Choice$2.25 per machine-hour$4.88 per machine-hour

Name: McCaskey Corporation uses an activity-based costing system with the f
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Description: McCaskey Corporation uses an activity-based costing system with the following threeactivity cost pools:Activity Cost PoolTotal Activitymachine-40,000 hours500 ordersFabricationOrder processingSt54OtherN/AThe Other activity cost pool is used to accum

Total cost assigned to fabrication = Total costs x 20% = $780,000 x 20% = $156,000

Business

Accounting

McCaskey Corporation uses an activity-based costing system with the following three activity cost pools: Activity Cost Pool Total Activity machine- Fabrication Order processing 40,000 hours 500 orders N/A Other 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: Wages and salaries $469,000 191,000 120,000 $780,000 Depreciation Occupancy Total The distribution of resource consumption across activity cost pools is given below: Activity Cost Pools Order Fabrication Processing Other 20% Total Wages and salaries Depreciation Occupancy 60% 20% 55% 35% 100% 100% 100% 20% 25% 45% 20% The activity rate for the Fabrication activity cost pool is closest to: Multiple Choice $2.25 per machine-hour $4.88 per machine-hour

McCaskey Corporation uses an activity-based costing system with the following three activity cost pools: Activity Cost Pool Total Activity machine- Fabrication Order processing 40,000 hours 500 orders N/A Other 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: Wages and salaries $469,000 191,000 120,000 $780,000 Depreciation Occupancy Total The distribution of resource consumption across activity cost pools is given below: Activity Cost Pools Order Fabrication Processing Other 20% Total Wages and salaries Depreciation Occupancy 60% 20% 55% 35% 100% 100% 100% 20% 25% 45% 20% The activity rate for the Fabrication activity cost pool is closest to: Multiple Choice $2.25 per machine-hour $4.88 per machine-hour

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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