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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