Reference no: EM132706193

Question - Navpreet Kaur has recently opened a whole sale food distribution business in Brampton, Ontario. She wants to use activity - based costing for all of its over-head costs. Navpreet has provided the following data concerning its annual overhead costs and its activity - based costing system.

Details provided by Navpreet regarding overhead costs:

Delivery + Chief: Wages and Salaries Other Expenses

$480,000 $200,000 $680,000

TOTAL

The resource consumption of has the following distribution table:

The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs. The activity measures for the activity cost pools for the year are as follows:

Activity Cost Pool

Filling Orders Customer Support

Activities 4,000 orders 25 customers

Required -

a) Calculate the overall activity rate for Filling Orders activity cost pool.

b) Calculate the overall activity rate for Customer Support activity cost pool.

c) Calculate wages and salaries cost of the delivery personnel's & chiefs if a customer place seven orders in a year.