Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Cobinette Company has provided the following data concerning its overhead costs for the coming year: Wages and salaries Depreciation Rent Total $ 490,000 195,000 215,000
Cobinette Company has provided the following data concerning its overhead costs for the coming year: Wages and salaries Depreciation Rent Total $ 490,000 195,000 215,000 $ 900,000 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 labor- 35,000 hours Assembly Order processing Other 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 20% 351 50% 25 100% 30% 100% 40% 358 25 100% Rent The activity rate for the Order Processing activity cost pool is closest to: Multiple Choice $755 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