Escau 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

$$380,000$

Other expenses

$100,000$

Total

$$480,000$

Distribution of Resource Consumption:

Activity Cost Pools

Filling Orders

Customer Support

Total

Wages and salaries

$30\%$

$70\%$

$100\%$

Other expenses

$35\%$

$65\%$

$100\%$

The activity measures for the activity cost pools for the year are as follows:

Activity Cost Pool

Activity

Filling orders

$3,000$ orders

Customer support

$20$ customers

What would be the total overhead cost per customer according to the activity$-$based 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 $16$Answer

a$.$

$$16,550$

b$.$

$$3,250$

c$.$

$$13,300$

d$.$

$$24,000$

Answer rating: 100% (QA)

To calculate the total overhead cost per customer according to the activitybased costing system we n... View the full answer