Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Bennette Corporation has provided the following data concerning its overhead costs for the coming year: Wages and salaries Depreciation Rent Total $400,000 150,000 170,000 $720,000
Bennette Corporation has provided the following data concerning its overhead costs for the coming year: Wages and salaries Depreciation Rent Total $400,000 150,000 170,000 $720,000 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 30,000 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: Activity Cost Pools Assembly Order Processing Other Total Wages and salaries Depreciation 40% 35% 25% 100% 20% 50% 30% 100% Rent 40% 35% 25% 100% The activity rate for the Order Processing activity cost pool is closest to: Multiple Choice $610 per order $600 per order $478 per order $620 per order
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started