Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 activity-based costing for 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 $500,000
Non-wage expenses 180,000
Total $680,000
Distribution of Resource Consumption:
Activity Cost Pools
Filling Orders Product Support Other Total
Wages and salaries 15%75%10%100%
Non-wage expenses 10%70%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 Annual Activity
Filling orders 6,000 orders
Product support 30 products
Other Not applicable
Required:
Compute the activity rates (i.e., 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
Non-wage expenses
Total

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

Step: 3

blur-text-image

Ace Your Homework with AI

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

Get Started

Students also viewed these Accounting questions