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XYZ company has supplied the following data from its activity-based costing system: Overhead Costs Wages and Salaries -$500,000 Other Overhead Costs - $200,000 Activity Cost

XYZ company has supplied the following data from its activity-based costing system:

Overhead Costs

Wages and Salaries -$500,000

Other Overhead Costs - $200,000

Activity Cost Pool Activity Measure Total Activity for the Year

Supporting direct labor Number of labor hours 15,000 Labor Hours

Order Processing Number of Customer Orders 300 Orders

Customer Support Number of Customers 400

Other n/a n/a

Distribution of Resource Consumption Across Activities

Supporting Direct Labor Order Processing Customer Support Other Total

Wages and Salaries 20% 20% 50% 10% 100%

Other Overhead Costs 30% 30% 20% 20% 100%

What is the activity rate for order processing?

(A) $533.33 (B) $10.67 (C) $501.99(D) Cannot be determined.

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