Wages and salaries Depreciation Rent Total $530,000 215,000 235,000 $980,000 The
ID: 2557607 • Letter: W
Question
Wages and salaries Depreciation Rent Total $530,000 215,000 235,000 $980,000 The company has an activity-based costing system with the following three activity cost pools and estimated activity for the coming year Total Activity 35,000 hours Not applicable Activity Cost Pool labor- Assembly Order processing Other 450 orders 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 Assembly Order Processing Wages and salaries Depreciation Rent 358 10% 30% 30% 40% 258 Other 358 508 45% Total 100% 100% 100% The activity rate for the Order Processing activity cost pool is closest to ?Prev 2of 9 Next >Explanation / Answer
Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Amount Cost of order processing: Wages and salaries = 530,000 *30% 159,000.00 Depreciation= 215,000 *40% 86,000.00 Wages and salaries = 235,000 *25% 58,750.00 Total order processing costs 303,750.00 No of orders 450.00 Activity rate for the order processing activity cost pool is 675.00
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