Bennette Corporation has provided the following data concerning its overhead costs for the coming year: Wages and salaries $ 450,000 Depreciation 175,000 Rent 195,000 Total $ 820,000 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 35,000 labor-hours Order processing 450 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 Total Assembly Order Processing Other 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: Multiple Choice $555 per order $545 per order $425 per order $565 per order
Bennette Corporation has provided the following data concerning its overhead costs for the coming year: Wages and salaries $ 450,000 Depreciation 175,000 Rent 195,000 Total $ 820,000 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 35,000 labor-hours Order processing 450 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 Total Assembly Order Processing Other 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: Multiple Choice $555 per order $545 per order $425 per order $565 per order
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 7EA: A company estimates its manufacturing overhead will be $750,000 for the next year. What is the...
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Bennette Corporation has provided the following data concerning its overhead costs for the coming year:
| Wages and salaries | $ 450,000 |
|---|---|
| 175,000 | |
| Rent | 195,000 |
| Total | $ 820,000 |
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 | 35,000 | labor-hours |
| Order processing | 450 | 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 | Total | |||
|---|---|---|---|---|
| Assembly | Order Processing | Other | ||
| Wages and salaries | 30% | 25% | 45% | 100% |
| Depreciation | 15% | 45% | 40% | 100% |
| Rent | 35% | 30% | 35% | 100% |
The activity rate for the Order
Multiple Choice
$555 per order
$545 per order
$425 per order
$565 per order
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