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Question 7 (5 marks) Evandro Company is a wholesale distributor that uses activity-based costing for all of its overhead costs. The company has provided

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Question 7 (5 marks) Evandro 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 Distribution of costs $380,000 100.000 $480,000 Activity Cost Pools Filling Orders Customer Other Total Support Wages and 30% 60% (10%) 100% salaries Other expenses 35% 45% 20 100% Activity Cost Pool Filling orders Customer support Activity 3,000 orders 20 customers Requirement 1: What would be the overall activity rate for the Filling Orders activity cost pool? Requirement 2: How much wages and salaries cost would be allocated to a customer who placed eight orders in a year?

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