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:
|
|
Filling |
Product |
|
|
|
Activity Cost Pools |
Orders |
Support |
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 |
|
|