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Bennette Corporation has provided the following data concerning its overhead costs for the coming year: Wages and salaries Depreciation Rent Total $390,000 145,000 165,000 $700,000
Bennette Corporation has provided the following data concerning its overhead costs for the coming year: Wages and salaries Depreciation Rent Total $390,000 145,000 165,000 $700,000 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 Total Activity labor- Assembly 25,000 hours Order processing 450 orders Other 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: Activity Cost Pools Assembly Order Processing Other Wages and salaries Depreciation Rent Total 100% 100% 100% 45% 35% 40% 35% The activity rate for the Order Processing activity cost pool is closest to: Multiple Choice 0 O $525 per order 0 $405 per order 0 O $515 per order 0 O $505 per order
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