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 posting system: Overhead costs: Wages and salaries Other expenses Total Distribution of Resource Consumption: Wages and salaries Other expenses Filling Orders 30% 35% Activity Cost Pools Customer Support 70% 65% $380,000 100,000 $480,000 Total 100% 100% 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 To the nearest whole dollar, what is the total cost that would be allocated to a customer who placed eight orders in a year?

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 posting system: Overhead costs: Wages and salaries Other expenses Total Distribution of Resource Consumption: Wages and salaries Other expenses Filling Orders 30% 35% Activity Cost Pools Customer Support 70% 65% $380,000 100,000 $480,000 Total 100% 100% 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 To the nearest whole dollar, what is the total cost that would be allocated to a customer who placed eight orders in a year?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Multiple Choice $685 per order $675 per order $544 per order $665 per order
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