Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Esmere Company is a wholesale distributor that uses activity-based costing for all of its overhead costs. the company has provided the following data concerning its

image text in transcribed
Esmere Company is a wholesale distributor that 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 $620,000 Other expenses $240,000 Total $860,000 Distribution of resource consumption: Activity Cost Pools Filling Customer Orders Support Other Total Wages and salaries 30% 60% 10% 100% Other expenses 45% 35% 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 Activity Filling orders 3,000 orders Customer support 70 customers 10. 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? What would be the total overhead cost per customer according to the activity based costing system? In other words, what would be the overall activity rate for the customer support activity cost pool? (Round to the nearest whole dollar.) H. To the nearest whole dollar, how much wages and salaries cost would be allocated to a customer who made 8 orders in a year? 12. If the company used a plant-wide rate to allocate overhead based on number of orders, then a customer who made 8 orders would be allocated how much overhead

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Performance Audit Report Property Assessment Division Department Of Revenue

Authors: Montana Legislature Office Of The L

1st Edition

1019260211, 978-1019260210

More Books

Students also viewed these Accounting questions