Distribution of resource consumption

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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:

Overhead costs:

 

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............

 

 

 

 

Reference no: EM13646445

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