Question: Answer this question about McCaskey Corporation: McCaskey Corporation uses an activity-based costing system with the following three activity cost pools: Activity Cost Pool Total Activity

Answer this question about McCaskey Corporation:Answer this question about McCaskey Corporation: McCaskey Corporation uses an activity-based costing

McCaskey Corporation uses an activity-based costing system with the following three activity cost pools: Activity Cost Pool Total Activity 40,000 machine-hours Fabrication Order processing Other 500 orders NIA The Other activity cost pool is used to accumulate costs of idle capacity and organization-sustalning costs. The company has provided the following data concerning its costs Wages and salaries Depreclation Occupancy Total $497,000 118,000 139,000 $754,000 The distribution of resource consumption across activity cost pools Is glven below: Activity Cost Pools Order Fabrication ProcessingOther Total Wages and salaries Depreclation Occupancy 5% 10% 5% 85% 25% 65% 10% 65% 30% 100% 100% 100% The activity rate for the Fabrication activity cost pool is closest to $1.82 per machine-hour O $4.71 per machine-hour O $1.09 per machine-hour

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