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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 $ 340,000 120,000 140,000
Bennette Corporation has provided the following data concerning its overhead costs for the coming year: Wages and salaries Depreciation Rent Total $ 340,000 120,000 140,000 $ 600,000 The company has an activity-based costing system with the following three activity cost pools and estimated activity for the coming year: Total Activity Activity Cost Pool Assembly Order processing Other 30,000 labor-hours 500 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: Assembly Activity Cost Pools Order Processing Other Total Wages and salaries Depreciation 40% 35% 25% 100% 15% 45% 40% 100% Rent 35% 30% 35% 100% The activity rate for the Order Processing activity cost pool is closest to: Multiple Choice $430 per order $420 per order $360 per order $440 per order
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