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For its overhead costs, the wholesale distributor Janz Company uses activity-based costing. In terms of the company's annual overhead costs and its activity-based costing system
For its overhead costs, the wholesale distributor Janz Company uses activity-based costing. In terms of the company's annual overhead costs and its activity-based costing system the following data has been provided:
Overhead costs | |
Wages and salaries | $380,000 |
Non-wage expenses | $90,000 |
Total | $470,000 |
Distribution of Resource consumption:
Activity Cost Pools | ||||
Filling Orders | Product Support | Other | Total | |
Wages and salaries | 20% | 65% | 15% | 100% |
Non-wages expenses | 15% | 60% | 25% | 100% |
The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs. Shown below is the amount of activity for the year:
Activity cost pool | Annual Activity |
Filling Orders | 3,100 orders |
Product support | 32 products |
Other | Not applicable |
Submission Instructions:
Compute the activity rates for the Filling Orders and Product Support activity cost pools.
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