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Mussenden Corporation has an activity-based costing system with three activity cost poolsMachining, Order Filling, and Other. In the first stage allocations, costs in the two overhead accounts, equipment depreciation and supervisory expense, are allocated to three activity cost pools based on resource consumption. Data used in the first stage allocations follow:

Overhead costs:
Equipment depreciation	$	98,360
Supervisory expense	$	2,570

Distribution of Resource Consumption Across Activity Cost Pools:
	Activity Cost Pools
	Machining			Order Filling			Other
Equipment depreciation		0.60			0.10			0.30
Supervisory expense		0.50			0.20			0.30

Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow:

Activity:
	MHs (Machining)	Orders (Order Filling)
Product P4	5,400	450
Product S4	9,600	1,050
Total	15,000	1,500

How much overhead cost is allocated to the Order Filling activity cost pool under activity-based costing?

Noreen 4e Rechecks 2017-24-03

$514

$9,836

$19,950

$10,350

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Mussenden Corporation has an activity-based costing system with three activity cost poolsMachining, Order Filling, and Other. In the first stage allocations, costs in the two overhead accounts, equipment depreciation and supervisory expense, are allocated to three activity cost pools based on resource consumption. Data used in the first stage allocations follow:

Overhead costs:
Equipment depreciation	$	193,060
Supervisory expense	$	12,970

Distribution of Resource Consumption Across Activity Cost Pools:
	Activity Cost Pools
	Machining			Order Filling			Other
Equipment depreciation		0.60			0.10			0.30
Supervisory expense		0.50			0.20			0.30

Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow:

Activity:
	MHs (Machining)				Orders (Order Filling)
Product P4		10,800				900
Product S4		19,200				2,100
Total		30,000				3,000

The activity rate for the Order Filling activity cost pool under activity-based costing is closest to:

$5.06 per order

$68.68 per order

$7.30 per order

$4.32 per order

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