Crot Corporation produces a single product. Last year, the sales were as follows: 7,640 units, 2,770 units, 31,430 units, and 51,560 units.
The divisional segment margin is $42,800, and the export products divisional segment margin is $95,200. The total amount of common fixed expenses not traceable to the individual divisions is $109,200. The company's net operating income loss is $138,000.
Leaper Corporation uses an activity-based costing system with three activity cost pools: Fabrication, Order processing, and Other. The Other activity cost pool is used to accumulate costs of idle capacity and organization-sustaining costs. The company's costs are as follows: Wages and salaries - $510,000, Depreciation - $215,000, Occupancy - $235,000, Total - $960,000.
The distribution of resource consumption across activity cost pools is as follows:
Activity Cost Pools: Order Processing - 40%, Fabrication - 45%, Other - 15%
Wages and salaries, Depreciation, Occupancy:
Order Processing - 50%, 20%, 30%
Fabrication - 35%, 40%, 25%
Other - Not applicable
The activity rate for the Order Processing activity cost pool is closest to $1,246 per order.
