-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) $11,100.
B) $12,950.
C) $13,800.
D) $14,800.

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) $11,100. 
B) $12,950. 
C) $13,800. 
D) $14,800.

Quizplus · Accepted Answer

To calculate the activity rate for the Customer Support activity cost pool, we need to divide the total cost of the pool ($276,000) by the total number of customer support hours (20,000). This gives an activity rate of $13.80 ($276,000 ÷ 20,000 = $13.80). Therefore, the total overhead cost per customer would be the product of the activity rate and the number of customer support hours per customer, which is 1,000 hours/customer x $13.80/hour = $13,800 per customer. Thus, the correct answer is C.

-What Would Be the Total Overhead Cost Per Customer According