Question

Happy Corporation has provided the following data concerning its overhead costs for the coming year: Wages...

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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