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

question 12

Multiple Choice

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

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Definitions:

Relationship

A connection, association, or involvement between two or more entities.

Theory of Natural Selection

A foundational principle of evolutionary biology proposing that organisms better adapted to their environment tend to survive and produce more offspring.

Evolutionary Scenario

A theoretical framework used to describe and analyze the evolutionary processes that give rise to specific traits or behaviors.

Behavioral Trait

A characteristic way of behaving that is often significant to the survival or reproductive success of an organism.