(Appendix 6A)Escau Corporation Is a Wholesale Distributor That Uses Activity-Based

question 6

Multiple Choice

(Appendix 6A) Escau Corporation 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 activity measures for the activity cost pools for the year are as follows: To the nearest whole dollar, how much wages and salaries cost would be allocated to a customer who made 8 orders in a year?

• A)$14, 784
• B)$11, 704
• C)$7, 392
• D)$9, 548

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Definitions:

Formal Hierarchy

An organizational structure where positions and roles are clearly defined, establishing clear lines of authority and communication.

Authority

The power or right to give orders, make decisions, and enforce obedience.

Autonomy

The capacity to make an informed, uncoerced decision; in the workplace, it often refers to the level of independence and self-direction an employee has.

Participation

The act of taking part or becoming involved in activities, processes, or discussions, often contributing to a group or community effort.