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Required information Skip to question Tory Company is a wholesale distributor that uses activity-based costing for all of its overhead costs. The company has provided

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Tory 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$600,000Other expenses200,000Total$800,000

Distribution of Resource Consumption:

Activity Cost Pools Filling OrdersCustomer SupportOtherTotalWages and salaries30%60%10%100%Other expenses20%60%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 PoolActivityFilling orders3,500 ordersCustomer support35 customers

To the nearest whole dollar, how much wages and salaries cost would be allocated to a customer who placed eight orders in a year?

Multiple Choice

$7,474

$9,191

$10,697

$14,948

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