McCaskey Corporation uses an activity-based costing system with the following th

Question

McCaskey 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: dollar 1.65 per machine-hour dollar4.00 per machine-hour dollar0.80 per machine-hour dollar2.40 per machine-hour

Explanation / Answer

Total Cost of Fabrication : Wages                        $21,000

                                           Deprecation                  15,000

                                          Occupancy                     30,000

                                       Total cost                        66,000

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