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Bennette Corporation has provided the following data concerning its overhead costs for the coming year: Wages and salaries Depreciation Rent $ 500,000 200,000 220,000 $
Bennette Corporation has provided the following data concerning its overhead costs for the coming year: Wages and salaries Depreciation Rent $ 500,000 200,000 220,000 $ 920,000 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 Total Activity Assembly 40,000 labor-hours Order processing 500 orders Not Other 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 408 358 25$ 1008 Depreciation 108 408 501 1008 Rent 308 256 458 100% The activity rate for the Order Processing activity cost pool is closest to: Activity Cost Poola Ansembly Order Processing Wages and salaries 401 356 Depreciation 104 408 Rent 30* 256 The activity rate for the Order Processing activity cost pool is closest to Other 256 508 458 Total 1004 100 1008 Multiple Choice $620 per order $610 per order $510 per order $630 per order
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