Bennette Corporation has provided the following data concerning its overhead costs for the coming year: Wages and salaries Depreciation $ 530,000 215,000 235,000 $ 980,000 Rent Total 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 labor- 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 ca The distribution of resource consumption across activity cost pools is given below: Wages and salaries Depreciation 35,000 hours 450 orders Not Rent Activity Cost Pools Assembly Order Processing 35% 30% 10% 40% 30% 25% The activity rate for the Order Processing activity cost pool is closest to: Other 35% 50% 45% Total 100% 100% 100%

Quickbooks Online Accounting
3rd Edition
ISBN:9780357391693
Author:Owen
Publisher:Owen
Chapter5: Operating Activities: Purchases And Cash Payments
Section: Chapter Questions
Problem 2.10C
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$685 per order
$675 per order
$544 per order
$665 per order
Transcribed Image Text:Multiple Choice $685 per order $675 per order $544 per order $665 per order
Bennette Corporation has provided the following data concerning its overhead costs for the coming year:
Wages and salaries.
Depreciation
$ 530,000
215,000
235,000
$ 980,000
Rent
Total
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:
Wages and salaries
Depreciation
Total Activity
labor-
Activity Cost Pools
Assembly Order Processing
30%
35%
10%
40%
30%
25%
The activity rate for the Order Processing activity cost pool is closest to:
Rent
35,000 hours
450 orders
Not
Other
35%
50%
45%
Total
100%
100%
100%
Transcribed Image Text:Bennette Corporation has provided the following data concerning its overhead costs for the coming year: Wages and salaries. Depreciation $ 530,000 215,000 235,000 $ 980,000 Rent Total 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: Wages and salaries Depreciation Total Activity labor- Activity Cost Pools Assembly Order Processing 30% 35% 10% 40% 30% 25% The activity rate for the Order Processing activity cost pool is closest to: Rent 35,000 hours 450 orders Not Other 35% 50% 45% Total 100% 100% 100%
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