Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bennette Corporation has provided the following data concerning its overhead costs for the coming year: Wages and salaries Depreciation Rent $ 490,000 195,000 215,000 $

image text in transcribed
image text in transcribed
Bennette Corporation has provided the following data concerning its overhead costs for the coming year: Wages and salaries Depreciation Rent $ 490,000 195,000 215,000 $ 900,000 Total The company has an activity-based costing system with the following three activity cost pools and estimated activity for the coming year: Activity Cost Pool Total Activity Assembly 35,000 labor-hours Order processing 450 orders Not Other applicable The Other activity cost pool does not have a measure of activity, it is used to accumulate costs of idle capacity and organization-sustaining costs The distribution of resource consumption across activity cost pools is given below: Activity Cost Pools Assembly Order Processing Other Total Wages and salaries 409 35% 258 100% Depreciation 20% 308 1008 Rent 403 358 258 100% 508 The activity rate for the Order Processing activity cost pool is closest to: Wages and salaries Depreciation Rent 408 205 408 35% 50% 353 25% 304 258 100% 100 100% The activity rate for the Order Processing activity cost pool is closest to: Multiple Choice $598 per order 5775 per order $765 per order $755 per ordet

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Life Audit Journal What Is My Why

Authors: A S

1st Edition

B08F6TXV7Z, 9798672209692

More Books

Students also viewed these Accounting questions