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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