Data concerning three of the activity cost pools of Salcido LLC, a legal firm, h

Question

Data concerning three of the activity cost pools of Salcido LLC, a legal firm, have been provided below:

The activity rate for the “meeting with clients” activity cost pool is closest to:

.

Bennette Corporation has provided the following data concerning its overhead costs for the coming year:

The company has an activity-based costing system with the following three activity cost pools and estimated activity for the coming year:

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:

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

Activity Cost Pool Total Cost Total Activity Researching legal issues $ 23,030 810 research hours Meeting with clients $ 1,336,368 7,593 meeting hours Preparing documents $ 94,390 5,910 documents

Explanation / Answer

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1 The activity rate for the “meeting with clients” activity cost pool is closest to: 1336368/7593 176

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