TB MC Qu. 7-53 Bennette Corporation has provided the following...

Bennette Corporation has provided the following data concerning its overhead costs for the coming year:

Wages and salaries	$	340,000
Depreciation		120,000
Rent		140,000
Total	$	600,000

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	30,000	labor-hours
Order processing	500	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	40%	35%		25%	100%
Depreciation	15%	45%		40%	100%
Rent	35%	30%		35%	100%

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

Multiple Choice

• $430 per order

• $420 per order

• $360 per order

• $440 per order