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The activity rate for order processing activity cost pool is closest to Bennette Corporation has provided the following data concerning its overhead costs for the
The activity rate for order processing activity cost pool is closest to
Bennette Corporation has provided the following data concerning its overhead costs for the coming year. 33 Wages and salaries Depreciation 00-26.04 Rent $380,000 140,000 160,000 $680,000 Total 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 labor- 20,000 hours 500 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 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. -0.25:48 Wages and salaries Depreciation Rent Assembly 35% 10% 30% Activity Cost Pools Order Processing 30% 40% 25% Other 35% 50% 45% Total 100% 100% 100% The activity rate for the Order Processing activity cost pool is closest to Multiple Choice Step by Step Solution
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