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Business, 30.07.2020 23:01 jeanieb

Tatman Corporation uses an activity-based costing system with the following three activity cost pools: Activity Cost Pool Total Activity Fabrication 10,000 machine-hours Order processing 800 orders Other 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 $ 320,000 Depreciation 220,000 Occupancy 120,000 Total $ 660,000 The distribution of resource consumption across activity cost pools is given below: Activity Cost Pools Total Fabricating Order Processing Other Wages and salaries 20% 65% 15% 100% Depreciation 15% 35% 50% 100% Occupancy 5% 70% 25% 100% The activity rate for the Fabrication activity cost pool is closest to:

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