-What would be the total overhead cost per customer according to the activity-based costing system,rounded to the nearest whole dollar? In other words,what would be the overall activity rate for the Customer Support activity cost pool?
A) $10,800.
B) $12,600.
C) $13,650.
D) $14,400.

Question

-What would be the total overhead cost per customer according to the activity-based costing system,rounded to the nearest whole dollar? In other words,what would be the overall activity rate for the Customer Support activity cost pool?
A) $10,800. 
B) $12,600. 
C) $13,650. 
D) $14,400.

Quizplus · Accepted Answer

To calculate the overall activity rate for the Customer Support activity cost pool, we need to divide the total cost of the activity pool by the total number of customer support calls.

Total cost of activity pool = $546,000
Total number of customer support calls = 40,000

Activity rate for Customer Support = $546,000 ÷ 40,000 = $13.65

Therefore, the total overhead cost per customer according to the activity-based costing system would be $13.65, rounded to the nearest whole dollar. Thus, the best choice is C.

-What Would Be the Total Overhead Cost Per Customer According