Escau Company is a wholesale distributor that uses activity-based costing for all of its overhead...
70.2K
Verified Solution
Link Copied!
Question
Accounting
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 Orders
Customer Support
Total
Wages and salaries
30%
70%
100%
Other expenses
35%
65%
100%
The activity measures for the activity cost pools for the year are as follows:
Activity Cost Pool
Activity
Filling orders
3,000 orders
Customer support
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?
Question 17
a.
$397
b.
$20,000
c.
$16,947
d.
$16,550
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
