QUESTION 13

1. Coyle Corporation has provided the following data concerning its overhead costs for the forthcoming period:

   Wages and salaries	360,000
   Depreciation	80,000
   Rent	100,000
   Total	540,000

   The company uses an activity-based costing system with the following three activity cost pools and estimated activity for the coming year:

   Activity Cost Pool	Total Activity Cost Driver
   Assembly	20,000	labour hours
   Sales order processing	200	orders
   Other	300	repairs

   The distribution of resource consumption across activity cost pools is given below:

   	Activity Cost Pools			Total
   	Assembly	Sales order Processing	Other
   Wages and salaries	30%	35%	35%	100%
   Depreciation	30%	40%	30%	100%
   Rent	45%	30%	25%	100%

   The activity cost driver rate for the Sales Order Processing activity cost pool is closest to:

   	a.	1,080 per order
   	b.	630 per order
   	c.	945 per order
   	d.	940 per order