Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question 7 (5 marks) Evandro Company is a wholesale distributor that uses activity-based costing for all of its overhead costs. The company has provided
Question 7 (5 marks) Evandro Company is a wholesale distributor that uses activity-based costing for all of 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 Other expenses Total Distribution of costs $380,000 100.000 $480,000 Activity Cost Pools Filling Orders Customer Other Total Support Wages and 30% 60% (10%) 100% salaries Other expenses 35% 45% 20 100% Activity Cost Pool Filling orders Customer support Activity 3,000 orders 20 customers Requirement 1: What would be the overall activity rate for the Filling Orders activity cost pool? Requirement 2: How much wages and salaries cost would be allocated to a customer who placed eight orders in a year?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started