Question
Overhead Costs Cost Wages and Salaries $262,500.00 Other Overhead Costs $150,000.00 Total Overhead Costs $412,500.00 Activity Cost Pool Activity Measure Total Activity for the Year
Overhead Costs
Cost
Wages and Salaries
$262,500.00
Other Overhead Costs
$150,000.00
Total Overhead Costs
$412,500.00
Activity Cost Pool
Activity Measure
Total Activity for the Year
Direct labour support
Number of Direct Labour Hours
7,500 DLH
Order Processing
Number of Orders
500 orders
Customer Support
Number of Customers
120 customers
Other
costs not allocated to products or customers
N/A
Distribution of Resource Consumption Across Activities
Direct Labour Support
Order Processing
Customer Support
Other
Total
Wages and Salaries
20.00%
40.00%
30.00%
10.00%
100.00%
Other Overhead Costs
15.00%
25.00%
25.00%
35.00%
100.00%
During the year, On Bored completed the order for special telephone equipment for one of its customers, Procrastinet. This customer did not order any other products during the year. Data concerning the order was as follows:
Data concerning Procrastinet's Order
Units Ordered
115
units
Direct Labour-Hours
$.0.6
DLHs per unit
Selling Price
$220.00
per unit
Direct Materials
$195.00
per unit
Direct Labour Rate
$22.00
per direct labour hour
Using the above data, complete the following in regards to On Bored:
Compute the activity rates for the activity cost pools
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Accounting Multicolumn Journal
Authors: Claudia Gilbertson
11th Edition
1337565423, 9781337565424
