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 90,000 $470,000 Non-wage expenses Total Distribution of Resource Consumption: Activity Cost Pools Filling Orders 20% Non-wage expenses 15% Product Support Other Total Wages and salaries 65% 15% 100% 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 Filling orders Product support Other Annual Activity 3,100 orders 32 products Not applicable Instructions: Compute the activity rates for the Filling Orders and Product Support activity cost pools.
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 90,000 $470,000 Non-wage expenses Total Distribution of Resource Consumption: Activity Cost Pools Filling Orders 20% Non-wage expenses 15% Product Support Other Total Wages and salaries 65% 15% 100% 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 Filling orders Product support Other Annual Activity 3,100 orders 32 products Not applicable Instructions: Compute the activity rates for the Filling Orders and Product Support activity cost pools.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 11E: Ripley, Inc., costs products using a normal costing system. The following data are available for...
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