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Bennette Corporation has provided the following data concerning its overhead costs for the coming year: Wages and salaries Depreciation Rent $ 400,000 150,000 170,000 $
Bennette Corporation has provided the following data concerning its overhead costs for the coming year: Wages and salaries Depreciation Rent $ 400,000 150,000 170,000 $ 720,000 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 Total Activity 30,000 labor-hours 450 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: Wages and salaries Depreciation Rent Activity Cost Pools Assembly Order Processing 408 35% 50% 40% 35% Other 25% 30% 25% Total 100% 100% 100% 208 The activity rate for the Order Processing activity cost pool is closest to
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