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:
A) $515 per order
B) $505 per order
C) $405 per order
D) $525 per order

Question

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:
A) $515 per order 
B) $505 per order 
C) $405 per order 
D) $525 per order

Quizplus · Accepted Answer

The Answer of 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:
A) $515 per order 
B) $505 per order 
C) $405 per order 
D) $525 per order

Bennette Corporation Has Provided the Following Data Concerning Its Overhead