Question
polation has provided the following data concerning its overhead costs for the coming year. Wages and salaries Depreciation $ 360,000 120,000 Rent Total 180,000
polation has provided the following data concerning its overhead costs for the coming year. Wages and salaries Depreciation $ 360,000 120,000 Rent Total 180,000 $660,000 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 60,000 labor-hours 400 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 Order Assembly Processing Other Total Wages and salaries 25% 65% 10% 100% Depreciation 15% 45% 40% 100% Rent 35% 40% 25% 100% The activity rate for the Assembly activity cost pool is closest to a. $2.75 per labor-hour $2.85 per labor-hour $3.85 per labor-hour $2.65 per labor-hour
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