Bennette Corporation has provided the following data concerning its overhead costs for the coming year:  Wages and salaries$340,000Depreciation 120,000Rent 140,000Total$600,000The company has an activity-based costing system with the following three activity cost pools and estimated activity for the coming year:Activity Cost PoolTotal ActivityAssembly  30,000 labor-hoursOrder processing500 ordersOtherNot applicableThe 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?AssemblySetting UpOtherTotalWages and salaries40%35%25%100%Depreciation15%45%40%100%Utilities35%30%35%100%The activity

rate for the Order Processing activity cost pool is closest to:

A. $430 per order
B. $420 per order
C. $440 per order
D. $360 per order


Answer: A

Business

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