Hochberg Corporation Uses an Activity-Based Costing System with the Following

Multiple Choice

Hochberg Corporation uses an activity-based costing system with the following three activity cost pools: 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: The distribution of resource consumption across activity cost pools is given below: The activity rate for the Fabrication activity cost pool is closest to:

A) $5.30 per machine-hour
B) $3.60 per machine-hour
C) $7.20 per machine-hour
D) $4.80 per machine-hour