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Laguna Corporation has provided the following data concerning its overhead costs for the coming year: Wages and salaries Depreciation Rent Total $260,000 100,000 180,000 $540,000

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Laguna Corporation has provided the following data concerning its overhead costs for the coming year: Wages and salaries Depreciation Rent Total $260,000 100,000 180,000 $540,000 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 50,000 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....... 60% 20% 20% 100% Depreciation 5% 60% 35% 100% Rent... 30% 30% 40% 100% The activity rate for the Order Processing activity cost pool is closest to: $415 per order $405 per order $495 per order $270 per order

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