Question 2: Question 8: Bennette Corporation has provided the following data con

Question

Question 2:

Question 8:

Bennette Corporation has provided the following data concerning its overhead costs for the coming year: 2 Wages and salaries Depreciation $470,000 185,000 205,000 $860,000 10 points Total ReferencesThe 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 45,000 hours Not applicable labor- Assembly Order processing Other 550 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 Total 100% 100% 100% Assembly Order Processing Wages and salaries Depreciation Rent 30% 20% 30% 25% 50% 25% Other 45% 30% 45% The activity rate for the Order Processing activity cost pool is closest to Multiple Choice $382 per order $475 per order $485 per order $465 per order

Explanation / Answer

Question No. 2

Answer $ 475 per order

Question No.8

Answer is $7,250

Over head Over Head Costs Acitivity Cost pools Allocated overhead costs Wages and Salaries 470,000 25% 117,500 Depreciation 185,000 50% 92,500 Rent 205,000 25% 51,250 Total 261,250 Total Orders 550 Activity rate for the order processing activity cost pool 475

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