Leaper Corporation uses an activity-based costing system with the following three activity cost pools:Activity Cost PoolTotal ActivityFabrication 40,000 machine-hoursOrder processing200 ordersOtherNot applicableThe 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$360,000Depreciation 140,000Occupancy 160,000Total$660,000The distribution of resource consumption across activity cost pools is given below: Activity Cost Pools?AssemblySetting UpOtherTotalWages and salaries35%40%25%100%Depreciation5%55%40%100%Utilities30%45%25%100%The activity rate for the Order Processing activity cost pool is closest to:
A. $1,465 per order
B. $1,540 per order
C. $1,485 per order
D. $1,320 per order
Answer: A
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