Espinoza 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: Overhead costs:Wages and salaries $360,000Other expenses 150,000Total $510,000Distribution of resource consumption: Activity Cost Pools Filling Orders Customer Support Other Total Wages and salaries 35% 55% 10% 100%Other expenses 35% 50% 15% 100%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:Activity Cost Pool ActivityFilling orders 3,500 ordersCustomer support 15 customers. 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. $14,399 b. $17479 c. $12,243 d. $10,087
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Espinoza Company is a wholesale distributor that uses activity-based costing for all of its overhead...
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