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

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Orzel Corporation has provided the following data concerning its overhead costs for the coming year;Wages and salaries 240,000;Depreciation 120,000;Rent 180,000;Total 540,000;The 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;Assembly 10,000 labor-hours;Order processing 500 orders;Other Not applicable;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 Other Total;Wages and salaries 30% 50% 20% 100%;Depreciation 15% 35% 50% 100%;Rent 5% 65% 30% 100%;The activity rate for the Assembly activity cost pool is closest to;2.70 per labor-hour;16.20 per labor-hour;9.90 per labor-hour;9.00 per labor-hour

 

Paper#27769 | Written in 18-Jul-2015

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