Compute the activity rates for the filling orders

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Reference no: EM13518339

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



Reference no: EM13518339

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