(Appendix 6A) Escau Corporation 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:
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:
To the nearest whole dollar, how much wages and salaries cost would be allocated to a customer who made 8 orders in a year?
A) $14, 784
B) $11, 704
C) $7, 392
D) $9, 548
Correct Answer:
Verified
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