Connect https://newconnect.mhe ducation.com/flow/connect.htm Bennette Corporatio

Question

Connect https://newconnect.mhe ducation.com/flow/connect.htm Bennette Corporation has pronded the following data conceming its overhead costs for the coming year Wages and salaries Depreciation Rent $420,000 160,009 180,000 Total $760,009 The company has an activity-based costing system with the following three activity cost pools and estimated actviny for th Activity Cost Pool Total Activity labor- 40,000 hours 700 orders Not applicable Assembly Order processing Other The Other activity cost pool does not have a measure of activity t is used to accumulate costs of idle capacity and organizatio The distribution of resource consumption across activity cost pools is given below Activity Cost Pools Total 100% 100% 100% Assembly Order ProcessingOthen Wages and salaries Depreciation Rent 35% 15% 35% 308 45% 30% 35% 4% 35% The activity rate for the Orcer Processing sctivity cost pool is closest to MavisBeaconTeach zip . ^ eb and Windows

Explanation / Answer

Activity rate for order processing activity cost pool = $252000/700 orders = $360 per order

Order Processing Costs $ Wages and salaries (30% x $420000) 126000 Depreciation (45% x $160000) 72000 Rent (30% x $180000) 54000 252000

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