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Bennette Corporation has provided the following data concerning its overhead costs for the coming year: Wages and salaries Depreciation Rent $360,000 130,000 150,000 $640,000 Total
Bennette Corporation has provided the following data concerning its overhead costs for the coming year: Wages and salaries Depreciation Rent $360,000 130,000 150,000 $640,000 Total The company has an activity-based costing system with the following three activity cost pools and estimated activity for the coming year. Activity Cost Pool Assembly Order processing Other Total Activity labor- 40,000 hours 450 orders Not applicable The Other activity cost pool does not have a measure of activity, It is used to accumulate costs of idle capacity and organization-sustaining costs. The distribution of resource consumption across activity cost pools is given below: Wages and salaries Depreciation Rent Activity Cost Pools Assembly Order Processing 30% 25$ 15% 45% 35% 30% Other 45% 40% 35% Total 100% 100% 100% The activity rate for the Order Processing activity cost pool is closest to: Multiple Choice O $430 per order $420 per order $330 per order O $440 per order
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