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Following is some information about ABC Company's overhead costs for the coming year. Wages and salaries Depreciation Rent Total $ 530,000 215,000 235,000 $ 980,000
Following is some information about ABC Company's overhead costs for the coming year. Wages and salaries Depreciation Rent Total $ 530,000 215,000 235,000 $ 980,000 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 Assembly Order processing Other Total Activity 35,000 labor-hours 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: Wages and salaries Depreciation Rent Activity Cost Pools Assembly Order Processing 35% 30% 10% 40% 30% 25% Other 35% 50% 45% Total 100% 100% 100% The activity rate for the Order Processing activity cost pool is closest to: Multiple Choice O $544 per order $685 per order $675 per order $665 per order
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