Espinoza Company is a wholesale distributor that uses activity-based costing for all of its overhead costs....
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Espinoza 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.... $220,000 Other expenses Total.... 160,000 $380,000 Distribution of resource consumption: Filling Customer Activity Cost Pools Orders Support Other Total Wages and salaries........ 35% 55% 10% 100% Other expenses..... 15% 65% 20% 100% 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: Activity Cost Pool Filling orders.. Customer support..... Activity 4,000 orders 20 customers What would be the total overhead cost per customer according to the activity based costing system? In other words, what would be the overall activity rate for the customer support activity cost pool? (Round to the nearest whole dollar.) Select one: O a. $10,450 O b. $11,250 c. $12,350 d. $11,400 Espinoza 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.... $220,000 Other expenses Total.... 160,000 $380,000 Distribution of resource consumption: Filling Customer Activity Cost Pools Orders Support Other Total Wages and salaries........ 35% 55% 10% 100% Other expenses..... 15% 65% 20% 100% 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: Activity Cost Pool Filling orders.. Customer support..... Activity 4,000 orders 20 customers What would be the total overhead cost per customer according to the activity based costing system? In other words, what would be the overall activity rate for the customer support activity cost pool? (Round to the nearest whole dollar.) Select one: O a. $10,450 O b. $11,250 c. $12,350 d. $11,400
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