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

question 7

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 order according to the activity based costing system? In other words,what would be the overall activity rate for the filling orders activity cost pool? (Round to the nearest whole cent. )

• A)$54.00
• B)$63.00
• C)$58.50
• D)$56.50

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Definitions:

Sartorius

The longest muscle in the human body, extending from the hip to the knee, involved in flexing, abducting, and rotating the thigh.

Knee-Jerk Reflex

A rapid, automatic response to a stimulus, such as a tap on the knee tendon, that tests the integrity of the nervous system.

Stretch Reflex

A muscle contraction in response to stretching within the muscle, a neural mechanism maintaining muscle tone and posture.

Tibial Nerve

A branch of the sciatic nerve that extends down the lower leg, responsible for innervating various parts of the foot and leg.