1.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 PoolAnnual Activity

Filling orders .........3,000 orders

Product support ......30 products