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Edward Company uses activity-based costing for all of its overhead costs. The company has provided the following data concerning its annual overhead costs and its
Edward Company uses activity-based costing for all of 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 $620000 Other expenses $240,000 Total $860,000 Distribution of resource consumption: The amount of activity for the year is as follows: What would be the total overhead cost per order according to the activity based costing system? In other words, what would be the overall activity rate for the filling orders activity cost pool? Edward Company uses activity-based costing for all of 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 $620000 Other expenses $240,000 Total $860,000 Distribution of resource consumption: The amount of activity for the year is as follows: What would be the total overhead cost per order according to the activity based costing system? In other words, what would be the overall activity rate for the filling orders activity cost pool
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