Goldbard Company, a wholesale distributor, uses activity-based costing for its overhead costs. The company has provided the following data concerning its annual overhead costs and its activity based costing system:
|
Overhead costs:
|
|
|
Wages and salaries
|
$540,000
|
|
Nonwage expenses
|
220,000
|
|
Total
|
$760,000
|
Distribution of resource consumption:
|
Activity Cost Pools
|
Installing Floor
|
Job Supports
|
Other
|
Total
|
|
Wages and salaries
|
55%
|
35%
|
10%
|
100%
|
|
Nonwage expenses
|
15%
|
65%
|
20%
|
100%
|
The "Other" activity cost pool consists of the costs of idle capacity and organization sustaining costs.
The amount of activity for the year is as follows:
|
Activity Cost Pool
|
Annual Activity
|
|
Filling orders
|
3,000 orders
|
|
Product support
|
30 products
|
|
Other
|
Not applicable
|
Required:
Compute the activity rates (i.e., cost per unit of activity) for the Filling Orders and Product Support activity cost pools by filling in the table below:
|
Filling
|
Product
|
|
Orders
|
Support
|
|
Wages and salaries
|
|
|
|
Nonwage expenses
|
|
|
|
Total
|
|
|