Problem:
1. 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:
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Overhead costs:
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Wages and salaries
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$540,000
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Nonwage expenses
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220,000
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Total
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$760,000
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2. Distribution of resource consumption:
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Activity Cost Pools
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Installing Floor
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Job Supports
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Other
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Total
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Wages and salaries
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55%
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35%
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10%
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100%
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Nonwage expenses
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15%
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65%
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20%
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100%
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3. 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:
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Activity Cost Pool
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Annual Activity
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Filling orders
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3,000 orders
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Product support
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30 products
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Other
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Not applicable
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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:
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Filling
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Product
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Orders
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Support
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Wages and salaries
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|
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Nonwage expenses
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|
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Total
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