Escalona 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

$$580,000$

Other expenses

$200,000$

Total

$$780,000$

Distribution of Resource Consumption:

Activity Cost Pools

Filling Orders

Customer Support

Total

Wages and salaries

$40\%$

$60\%$

$100\%$

Other expenses

$35\%$

$65\%$

$100\%$

The amount of activity for the year is as follows:

Activity Cost Pool

Activity

Filling orders

$1,000$ orders

Customer support

$30$ customers

To the nearest whole dollar, what is the total cost that would be allocated to a customer who placed four orders in a year?

Question $17$Answer

a$.$

$$15,933$

b$.$

$$17,141$

c$.$

$$20,000$

d$.$

$$1,208$