### Distribution of resource consumption

Assignment Help Database Management System
##### Reference no: EM13646445

Golden 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:

 Wages and salaries....... \$680,000 Nonwage expenses...... 120,000 Total............................. \$800,000

Distribution of resource consumption:

 Filling Product Activity Cost Pools Orders Support Other Total Wages and salaries............ 15% 75% 10% 100% Nonwage expenses............ 25% 55% 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............. 4,000 orders Product support........ 40 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 Other Total Wages and salaries............. Nonwage expenses............

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