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5. Doyle Corporation has provided the following data concering its overhead costs for the forthcoming period: Wages and salaries 460,000 Depreciation 180.000 Rent 200,000 Total

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5. Doyle Corporation has provided the following data concering its overhead costs for the forthcoming period: Wages and salaries 460,000 Depreciation 180.000 Rent 200,000 Total 840,000 The company uses an activity-based costing system with the following three activity cost pools and estimated activity for the coming year: Activity Cost Pool Total Activity Cost Driver Assembly 40,000 labour hours Sales order processing 400 orders Other 600 repairs The distribution of resource consumption across activity cost pools is given below: Activity Cost Pools Sales order Assembly Processing Other Total Wages and salaries35% 30% 35% 100% Depreciation 20% 50% 30% 100% Rent 40% 35% 25% 100% The activity cost driver rate for the Sales Order Processing activity cost pool is closest to: (a) 755 per order (b) 570 per order (c) 735 per order (d) 745 per order

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