Use the following to answer questions 14-15: Bolton Company uses activity-based

Question

Use the following to answer questions 14-15: Bolton Company 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 $620,000 240,000 $860,000 Distribution of resource consumption: Activity Cost Pools Orders Support Delivery 6096 Filling Customer CustomerTotal Wages and salaries Other expenses 30% 45% 10% 20% 100% 100% 35% The "Delivery" activity cost pool consists of the costs of product delivery to the customer. The amount of activity for the year is as follows: Activity Cost Pools Filling orders Customer support Customer Deliveries Activity 3,000 orders 70 customers 200 deliveries

Explanation / Answer

Allocation of wages and salary :

Calculate Total amount of wages and salary cost allocated to this customer :

Amount = (62*8+5314) = 5810

So answer is d) $5810

Filling orders Customer support Customer deliveries Wages and salary 620000*30% = 186000 372000 62000 Activity base 3000 70 200 Activity rate 62 5314 310

Related Questions

Navigate

• Browse (All)
• Browse U
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.