Business, 12.08.2020 09:01 sunflowerdaisy35
Espinoza 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 220,000
Other expenses 150,000
Total $510,000
Distribution of resource consumption:
Filling Orders Activity Cost Pools Customer Support Other Total
Wages and salaries 35% 55% 10% 100%
Other expenses 35% 50% 15% 100%
The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs. The activity measures for the activity cost pools for the year are as follows:
Activity Cost Pool Activity
Filling orders 3,500 orders
Customer support 15 customers.
What would be the overall activity rate for the filling orders activity cost pool?
Answers: 2
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Espinoza Company is a wholesale distributor that uses activity-based costing for all of its overhead...
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