Question: Question 11 (2 points) Tatman Corporation uses an activity-based costing system with the following three activity cost pools: Total Activity Activity Cost Pool Fabrication Order
Question 11 (2 points) Tatman Corporation uses an activity-based costing system with the following three activity cost pools: Total Activity Activity Cost Pool Fabrication Order proccssine 1 Oter.. Not applicable 10,000 machine-hours 800 orders 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. Total... 220,000 120,000 The distribution of resource consumption across activity cost pools is given below: Activity Cost Pools Order Fabrication Processing Other Total Depreciation Occupancy 20% 15% 5% 65% 35% 70% 15% 50% 25% 100% 100% 100% a) $3.30 per machine-hour O b) $13.20 per machine-hour O d) $10.30 per machine-hour Od) $8.80 per machine-hour
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