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Bennette Corporation has provided the following data concerning its overhead costs for the coming year: Wages and salaries Depreciation Rent $470,000 185,000 205,000 $860,000 Total
Bennette Corporation has provided the following data concerning its overhead costs for the coming year: Wages and salaries Depreciation Rent $470,000 185,000 205,000 $860,000 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 Other Total Activity labor- 45,000 hours 550 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 Order Processing Wages and salaries Depreciation Rent Assembly 308 208 303 250 SOR Other 452 308 458 Total 100% 1008 1008 25% The activity rate for the Order Processing activity cost pool is closest to: Assembly 308 Wages and salaries Depreciation Rent Activity Cost Pools Order Processing 2258 508 258 Other 45% 308 458 Total 100% 1000 1008 20% 303 The activity rate for the Order Processing activity cost pool is closest to: Multiple Choice O $475 per order O $485 per order O $465 per order O $382 per order O
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