Business, 04.04.2020 07:54 itssamuelu

Bennette Corporation has provided the following data concerning its overhead costs for the coming year: Wages and salaries $540,000 Depreciation 220,000 Rent 240,000 Total $1,000,000 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 40,000 labor-hours Order processing 600 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 30% 25% 45% 100% Depreciation 15% 45% 40% 100% Rent 35% 30% 35% 100% The activity rate for the Order Processing activity cost pool is closest to .

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