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Bennette Corporation has provided the following data concerning its overhead costs for the coming year: Wages and salaries $ 510,000 Depreciation 205,000 Rent 225,000 Total
Bennette Corporation has provided the following data concerning its overhead costs for the coming year: Wages and salaries $ 510,000 Depreciation 205,000 Rent 225,000 Total $ 940,000 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 Assembly Order processing Other Total Activity 45,000 labor-hours 450 orders Not 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: Wages and salaries Depreciation Rent Assembly 35% 15% 35% Activity Cost Pools Order Processing 30% 45% 30% Other 35% 40% 35% Total 100% 100% 100% The activity rate for the Order Processing activity cost pool is closest to: Multiple Choice $695 per order $685 per order $545 per order $705 per order
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