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Tory Company is a wholesale distributor that uses activity-based costing for all of its overhead...

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Accounting

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Tory 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 Other expenses Total $600,000 200.000 $800,000 Distribution of Resource Consumption: Filling Orders Activity Cost Pools Customer Other Support 60% 10% Total 30% 100% Wages and salaries Other expenses 20% 60% 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 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 Activity Cost Pool Filling orders Customer support 3.500 orders 35 customers To the nearest whole dollar, how much wages and salaries cost would be allocated to a customer who placed eight orders in a year? Multiple Choice 5 $7,474

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