1. Tatman Corporation uses an activity-based costing system with the following t

Question

1. Tatman 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: (Points : 2)       $3.30 per machine-hour
      $13.20 per machine-hour
      $10.30 per machine-hour
      $8.80 per machine-hour

Explanation / Answer

$10.30 per machine-hour

$336,000

$3,384.70 per unit

1,500

$292,000

66,000

$13,825.00

$14,100

392,000 units

$48,840

$21,320

$9,097.41

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