Question 1:

QUESTION 2:

Eccles Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs and its activity based costing system: Costs: Wages and salaries Depreciation Utilities $321,000 308,000 145,000 $774,000 Total Distribution of resource consumption: Wages and salaries Depreciation Utilities Assembly 55% 20% 35% Activity Cost Pools Setting Up 20% 20% 60% Other 25% 60% 5% Total 100% 100% 100% How much cost, in total, would be allocated in the first-stage allocation to the Assembly activity cost pool? Multiple Choice $276,233 O $288,900 $425,700 $270,900 Bennette Corporation has provided the following data concerning its overhead costs for the coming year: Wages and salaries Depreciation Rent $ 420,000 160,000 180,000 $760,000 Total 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 Assembly Order processing Other Total Activity labor- 40,000 hours 700 orders 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: Wages and salaries Depreciation Rent Assembly 35% 15% 35% Activity Cost Pools Order Processing 30% 45% 30% Other 35% 40% 35% Total 100% 100% 100% The activity rate for the Order Processing activity cost pool is closest to: Multiple Choice $360 per order $350 per order $283 per order $370 per order