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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%
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:
Wages and salaries.............
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