(Appendix 6A)Goel Company, a Wholesale Distributor, Uses Activity-Based Costing for Its

question 7

Essay

(Appendix 6A)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: 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:

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Definitions:

Demand Instrument

A financial document that requires the payment of money immediately or on demand.

Time Of Payment

The specific period or date by which payment for goods or services received must be made.

Voidable Instrument

A financial document or contract that is valid but may be annulled by one or more of the parties to the contract.

IOU Instrument

A document acknowledging a debt or an obligation to pay a specified sum of money to another party.