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

question 13

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:
-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

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