Goel Company,a Wholesale Distributor,uses Activity-Based Costing for Its Overhead Costs

question 33

Essay

Goel Company,a wholesale distributor,uses activity-based costing for its overhead costs.The company has provided the following data concerning its annual overhead costs and its activity-based costing system:
Distribution of Resource Consumption:
The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs.The amount of activity for the year is as follows:
Required:
Compute the activity rates (i.e. ,cost per unit of activity)for the Filling Orders and Product Support activity cost pools by filling in the table below:

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Definitions:

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