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............
|
|
|
|
|