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to the nearest whole dollar how much wages and salaries cost would be allocated to a 637585

Eskenazy 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

$580,000

Other expenses

120,000

Total

$700,000

Distribution of resource consumption:

 

Activity Cost Pools

 

Filling Orders

Customer Support

Other

Total

Wages and salaries

15%

75%

10%

100%

Other expenses

55%

25%

20%

100%

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:

Activity Cost Pool

Activity

Filling orders

2,000 orders

Customer support

20 customers

To the nearest whole dollar, how much wages and salaries cost would be allocated to a customer who made 7 orders in a year?

A) $22,055

B) $17,682

C) $13,309

D) $26,618

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