Escher 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: 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:
-What would be the total overhead cost per customer according to the activity based costing system? In other words,what would be the overall activity rate for the customer support activity cost pool? (Round to the nearest whole dollar. )
A)$16,200
B)$18,900
C)$20,100
D)$21,600

Question

Escher 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:   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:
-What would be the total overhead cost per customer according to the activity based costing system? In other words,what would be the overall activity rate for the customer support activity cost pool? (Round to the nearest whole dollar. )
A)$16,200 
B)$18,900 
C)$20,100 
D)$21,600

Quizplus · Accepted Answer

The Answer is C

Escher Company Is a Wholesale Distributor That Uses Activity-Based Costing