Bennette Corporation has provided the following data concerning its overhead costs for the coming year.
Wages and salaries.
$ 340,000
Depreciation
120,000
140,000
$ 600,000
Rent
Total
Wages and salaries
Depreciation
Seved
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
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.
Total Activity
labor-
30,000 hours
500 orders
Not
Rent
Activity Cost Pools
Assembly Order Processing
40%
35%
15%
45%
35%
30%
The activity rate for the Order Processing activity cost pool is closest to:
Other
25%
40%
35%
Help
Total
100%
100%
100%
Save & Exit
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