Navpreet Kaur has recently opened a whole sale food distribution business in Brampton, Ontario. She wants...
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Navpreet Kaur has recently opened a whole sale food distribution business in Brampton, Ontario. She wants to use activity - based costing for all of its over head costs. Navpreet has provided the following data concerning its annual overhead costs and its activity- based costing system. Details provided by Navpreet regarding overhead costs: Delivery + Chief: Wages and Salaries $ 480,000 Other Expenses $ 200,000 ТОTAL $680,000 The resource consumption of has the following distribution table: Activity Cost Pools Filling Customer Support 60% 45% Wages and Salaries Other Expenses Orders 30% Other 10% 20% 100% 100% Total 35% 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 Filling Orders Customer Support Activities 4,000 orders 25 customers a) Calculate the overall activity rate for Filling Orders activity cost pool. b) Calculate the overall activity rate for Customer Support activity cost pool. c) Calculate wages and salaries cost of the delivery personnel's & chiefs if a customer place seven orders in a year. Navpreet Kaur has recently opened a whole sale food distribution business in Brampton, Ontario. She wants to use activity - based costing for all of its over head costs. Navpreet has provided the following data concerning its annual overhead costs and its activity- based costing system. Details provided by Navpreet regarding overhead costs: Delivery + Chief: Wages and Salaries $ 480,000 Other Expenses $ 200,000 ТОTAL $680,000 The resource consumption of has the following distribution table: Activity Cost Pools Filling Customer Support 60% 45% Wages and Salaries Other Expenses Orders 30% Other 10% 20% 100% 100% Total 35% 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 Filling Orders Customer Support Activities 4,000 orders 25 customers a) Calculate the overall activity rate for Filling Orders activity cost pool. b) Calculate the overall activity rate for Customer Support activity cost pool. c) Calculate wages and salaries cost of the delivery personnel's & chiefs if a customer place seven orders in a year.
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Filling Orders Customer Support Other Total Wages and salaries A 480000 Usage B 30 60 10 100 A... View the full answer
Related Book For
Business Communication
ISBN: 978-1439080153
8th edition
Authors: Buddy Krizan, Patricia Merrier, Joyce P. Logan, Karen Schneiter Williams
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