2.

Leaper Corporation uses an activity-based costing system with the following three activity cost pools: Activity Cost Pool Fabrication Order processing Other Total Activity machine- 35,000 hours 250 orders Not applicable 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 Depreciation Occupancy $380,000 150,000 170,000 $ 700,000 Total The distribution of resource consumption across activity cost pools is given below: Activity Cost Pools Fabrication Order Processing 35% 15% 45% 35% 30% Wages and salaries Depreciation Occupancy 30% Other 35% 40% 35% Total 100% 100% 100% The activity rate for the Order Processing activity cost pool is closest to: Multiple Choice $726 per order $1,870 per order $930 per order Paparo Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Assembly Processing orders Inspection Total Cost Total Activity $ 794,300 47,000 machine-hours $ 61,280 1,600 orders $ 109,681 1,430 inspection-hours Data concerning the company's product Q79Y appear below: 500 1,130 115 Annual unit production and sales Annual machine-hours Annual number of orders Annual inspection hours Direct materials cost Direct labor cost 20 $42.00 per unit $41.31 per unit According to the activity-based costing system, the average cost of product Q79Y is closest to