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

Question 5

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Eschbach 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: Eschbach 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 6 orders in a year? A)  $2,739 B)  $3,287 C)  $4,382 D)  $2,191 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: Eschbach 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 6 orders in a year? A)  $2,739 B)  $3,287 C)  $4,382 D)  $2,191
-To the nearest whole dollar, how much wages and salaries cost would be allocated to a customer who made 6 orders in a year?


A) $2,739
B) $3,287
C) $4,382
D) $2,191

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