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Help Save & E Escau Company is a wholesale distributor that uses activity-based costing for all of its overhead costs. The company has provided the
Help Save & E Escau 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 Other expenses Total $400,000 100.000 $500,000 Distribution of Resource Consumption: Filling Orders Activity Cost Pools Customer Other Support 60% 15% Total 25% 100% Wages and salaries Other expenses 30% 50% 20% 100% 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 Activity Cost Pool Filling orders 3,000 orders c.cat Saved Activity Cost Pool Filling orders Customer support Help Save & Exit Submit Activity 3,000 orders 20 customers What would be the total overhead cost per order according to the activity-based costing system, rounded to the nearest whole cent? In other words, what would be the overall activity rate for the Filling Orders activity cost pool? Multiple Choice $48.00 $43.33 S
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