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:
-To the nearest whole dollar,how much wages and salaries cost would be allocated to a customer who made 4 orders in a year?
A)$15,756
B)$13,332
C)$10,908
D)$21,816

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:
-To the nearest whole dollar,how much wages and salaries cost would be allocated to a customer who made 4 orders in a year?
A)$15,756 
B)$13,332 
C)$10,908 
D)$21,816

Quizplus · Accepted Answer

Allocations to the Wages and salary:
 11eaa48f_7b87_fe52_9e4a_0748b8bb0fee_TB2485_00 
 11eaa48f_7b87_fe53_9e4a_5f3e6058bb82_TB2485_00 
 11eaa48f_7b87_fe54_9e4a_0b5c48dfb2ee_TB2485_00

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