Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Escau Corporation is a wholesale distributor that uses activity-based costing for all of its overhead costs. The company has provided the following data concerning its
Escau Corporation 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 Other expenses Total $ 467,500 102,000 $569,500 Distribution of resource consumption: Filling Orders 30% 35% Activity Cost Pools Customer Support 60% 45% Other 10% 20% Total 100% 100% Wages and salaries Other expenses 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 Actlvity 3,000 orders 20 customers To the nearest whole dollar, how much wages and salaries cost would be allocated to a customer who made 8 orders in a year? O $14,399 O $17479 O $12,243 $10,087
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started