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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