4 Hochberg Corporation uses an activity-based costing system with the following three activity cost pools:

4 Hochberg Corporation uses an activity-based costing system with the following three activity cost pools:

Activity Cost PoolTotal ActivityFabrication10,000machine-hoursOrder processing125ordersOtherNot 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$466,000 Depreciation 192,000 Occupancy 217,000 Total$875,000  

The distribution of resource consumption across activity cost pools is given below:

 Activity Cost Pools  FabricatingOrder ProcessingOtherTotalWages and salaries15%80%5%100%Depreciation10%30%60%100%Occupancy10%70%20%100% 

The activity rate for the Fabrication activity cost pool is closest to:

Noreen 4e Rechecks 2017-24-03

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