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Fotsco Company, a wholesale distributor, uses activity - based costing for its overhead costs. The company has provided the following data concerning its annual overhead
Fotsco Company, a wholesale distributor, uses activitybased costing for its overhead costs. The company has provided the following data concerning its annual overhead costs and its activitybased costing system:
Overhead Costs:
Wages and salaries $
Nonwage expenses
Total $
Distribution of Resource Consumption:
Activity Cost Pools
Filling Orders Product Support Other Total
Wages and salaries
Nonwage expenses
The "Other" activity cost pool consists of the costs of idle capacity and organizationsustaining costs. The amount of activity for the year is as follows:
Activity Cost Pool Annual Activity
Filling orders orders
Product support products
Other Not applicable
Required:
Compute the activity rates ie cost per unit of activity for the Filling Orders and Product Support activity cost pools by filling in the table below:
Filling Orders Product Support
Wages and salaries
Nonwage expenses
Total
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