Question: I need help with the problem: Zee Corporation has provided the following data concerning is overhead costs for the coming year: Wages and salaries $260,000.00

I need help with the problem:

Zee Corporation has provided the following data concerning is overhead costs for the coming year:

Wages and salaries $260,000.00

Depreciation $100,000.00

Rent $180,000.00

total $540,000.00

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 20,000.00 labor hours

Order Processing 300.00 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 10.00% 75.00% 15.00% 100.00%

Depreciation 5.00% 45.00% 50.00% 100.00%

Rent 30.00% 40.00% 30.00% 100.00%

The activity rate for the assembly activity cost pool is closest to:

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