Question
Data concerning three of the activity cost pools of Salcido LLC, a legal firm, have been provided below: Activity Cost Pool Total Cost Total Activity
Data concerning three of the activity cost pools of Salcido LLC, a legal firm, have been provided below:
| Activity Cost Pool | Total Cost | Total Activity | |||||||
| Researching legal issues | $ | 23,030 | 810 | research hours | |||||
| Meeting with clients | $ | 1,336,368 | 7,593 | meeting hours | |||||
| Preparing documents | $ | 94,390 | 5,910 | documents | |||||
The activity rate for the meeting with clients activity cost pool is closest to:
.
Bennette Corporation has provided the following data concerning its overhead costs for the coming year:
| Wages and salaries | $ | 350,000 | |||||
| Depreciation | 125,000 | ||||||
| Rent | 145,000 | ||||||
| Total | $ | 620,000 | |||||
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 | 35,000 | labor-hours | |||||
| Order processing | 450 | 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 | 10% | 40% | 50% | 100% | |
| Rent | 30% | 25% | 45% | 100% | |
The activity rate for the Order Processing activity cost pool is closest to:
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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