Question
Bennette Corporation has provided the following data concerning its overhead costs for the coming year: Wages and salaries $ 460,000 Depreciation 180,000 Rent 200,000 Total
Bennette Corporation has provided the following data concerning its overhead costs for the coming year: Wages and salaries $ 460,000 Depreciation 180,000 Rent 200,000 Total $ 840,000 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 Total Activity Assembly 40,000 labor-hours Order processing 400 orders Other 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 35% 30% 35% 100% Depreciation 20% 50% 30% 100% Rent 40% 35% 25% 100% The activity rate for the Order Processing activity cost pool is closest to: Multiple Choice $745 per order $735 per order $570 per order $755 per order
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