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Wages and salaries Depreciation Rent Total $530,000 215,000 235,000 $980,000 The company has an activity-based costing system with the following three activity cost pools and
Wages and salaries Depreciation Rent Total $530,000 215,000 235,000 $980,000 The company has an activity-based costing system with the following three activity cost pools and estimated activity for the coming year Total Activity 35,000 hours Not applicable Activity Cost Pool labor- Assembly Order processing Other 450 orders 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 Wages and salaries Depreciation Rent 358 10% 30% 30% 40% 258 Other 358 508 45% Total 100% 100% 100% The activity rate for the Order Processing activity cost pool is closest to ?Prev 2of 9 Next >
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