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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:

Activity Cost Pools Filling Customer

Orders Support Warranty Total

Wages and Salaries 30% 60% 10% 100%

Other Expenses 45% 35% 20% 100%

The amount of activity for the year is as follows:

Activity Cost Pools Activity

Filling Orders 4800 orders

Customer Support 90 customers

Warranty 2000 items

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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