Happy Corporation has provided the following data concerning its overhead costs for the coming year:
Wages and salaries $ 380,000
Depreciation 140,000
Rent 160,000
Total $ 680,000
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 20,000 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 35% 30% 35% 100% Depreciation 10% 40% 50% 100% Rent 30% 25% 45% 100% The activity rate for the Order Processing activity cost pool is closest to:
A. $420 Per order
B. $410
C.$340
D. $430
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