Escau Company is a wholesale distributor that uses activity-based costing for all of its overhead costs....
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Escau 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 Other Expenses Total $380,000 $100.000 $480.000 Distribution of Resource Consumption: Activity Cost Pools Filling Customer Orders Support Wages and Salaries Other Expenses 30% 35% 60% 45% Other 10% 20% Total 100% 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: Astivity Cost Pool Filling Orders Customer Support Astivity 3,000 orders 20 customers What would be the total overhead cost per order according to the activity-based costing system, rounded to the nearest whole cent? In other words, what would be the overall activity rate for the Filling Orders.activity cost pool? Escau 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 Other Expenses Total $380,000 $100.000 $480.000 Distribution of Resource Consumption: Activity Cost Pools Filling Customer Orders Support Wages and Salaries Other Expenses 30% 35% 60% 45% Other 10% 20% Total 100% 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: Astivity Cost Pool Filling Orders Customer Support Astivity 3,000 orders 20 customers What would be the total overhead cost per order according to the activity-based costing system, rounded to the nearest whole cent? In other words, what would be the overall activity rate for the Filling Orders.activity cost pool?
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Escau Company Distribution of Resource Consumption Filing Customer Orders Su... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
Posted Date:
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