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Use the following to answer questions 2-3: Escau Company is a wholesale distributor that uses activity-based costing for all of its overhead costs. The company
Use the following to answer questions 2-3: 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 $380,000 Other Expenses $100,000 Total $480.000 Distribution of Resource Consumption: Activity Cost Pools Filling Customer Orders Support 30% 60% 33% 43% Wages and Salaries Other Expenses Other 10% 20% Tota 100 100% 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 Cost Pool Filling Orders Customer Support Activity 3,000 orders 20 customers 2. What would be the activity rate for the Filling Orders activity cost pool? A) $48.00. B) $49.67. C) $52.00. D) $56.00 3. What would be the activity rate for the Customer Support activity cost pool? A) $10,800. B) $12,600 C) $13,650. $14,400
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