Tory Company is a wholesale distributor that uses activity-based costing for all of its overhead...
90.2K
Verified Solution
Link Copied!
Question
Accounting
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 Other expenses Total $600,000 200.000 $800,000 Distribution of Resource Consumption: Filling Orders Activity Cost Pools Customer Other Support 60% 10% Total 30% 100% Wages and salaries Other expenses 20% 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 Pool Activity 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 Activity Cost Pool Filling orders Customer support 3.500 orders 35 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 5 $7,474
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!
