Question 4.1For its overhead costs, the wholesale distributor Janz Company uses activity-based costing. In terms ofthe company's annual overhead costs and its activity-based costing system the following data has beenprovided:Overhead Costs:Wages and salaries$380,000Non-wage expenses90,000Total$470,000Distribution of Resource Consumption:Activity Cost PoolsFilling OrdersProduct SupportOtherTotalWages and salaries20%65%15%100%Non-wage expenses25%15%60%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 PoolFilling ordersProduct supportAnnual Activity3,100 orders32 productsNot applicableOtherInstructions:Compute the activity rates for the Filling Orders and Product Support activity cost pools.

Under Activity based costing, activity rate is computed by dividing the activity cost by the…

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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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