Question 1(Total: 20 marks)

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-wage 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

Required:

Compute the activity rates for the Filling Orders and Product Support activity cost pools