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Question: Compute the activity rates for the filling orders and product support activity cost pools.


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For its overhead costs, the wholesale distribfitor Jan; 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: 5380, 000 Non-wage expenses 90,000 Total $470,000 Distribution of Resource Consumption: Activity Cost Pools I Wages and salaries

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Filling Orders Product Support Other Total Wages and salaries 20% 65% 15% 100%
Non-wage 1 5% 60% 25% 1 00%
expenses 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 Annual Activity Filling orders 3,100 orders Product support 32 products ‘ Other Not applicable ‘
Required: Compute the activity rates for the Filling Orders and Product Support activity cost pools

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