Esmere 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:

Wages and salaries............ $620,000

Other expenses .................. $240,000

Total .................................. $860,000

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

Wages and salaries............ $620,000

Other expenses .................. $240,000

Total .................................. $860,000

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