Escau Company is a wholesale distributor that uses activity - based costing for all of its overhead
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Question:
Escau Company is a wholesale distributor that uses activitybased costing for all of its overhead costs. The company has provided the following data concerning its annual overhead costs and its activitybased costing system:
Overhead costs:
Wages and salaries
$
Other expenses
Total
$
Distribution of Resource Consumption:
Activity Cost Pools
Filling Orders
Customer Support
Total
Wages and salaries
Other expenses
The activity measures for the activity cost pools for the year are as follows:
Activity Cost Pool
Activity
Filling orders
orders
Customer support
customers
What would be the total overhead cost per customer according to the activitybased costing system, rounded to the nearest whole dollar? In other words, what would be the overall activity rate for the Customer Support activity cost pool?
Question Answer
a
$
b
$
c
$
d
$
Related Book For
Cost management a strategic approach
ISBN: 978-0073526942
5th edition
Authors: Edward J. Blocher, David E. Stout, Gary Cokins
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