Escher 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:

Escher 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	$552,000
Other expenses	220,000
Total	$772,000

Distribution of resource consumption
	Activity Cost Pools
	Filling Orders	Customer Support	Other	Total
Wages and salaries	40%	55%	5%	100%
Other expenses	50%	45%	5%	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	5,400	orders
Customer support	22	customers

What would be the total overhead cost per order according to the activity based costing system? In otherwords, what would be the overall activity rate for the filling orders activity cost pool?

	$63.26
	$61.26
	$58.76
	$67.76

Allocations to the Filling Orders activity cost pool:

Wages and salaries (40% × $552,000)	$220,800
Customer support (50% × $220,000)	110,000
Total cost of filling orders	$330,800

Cost per order = Total cost of filling orders ÷ Number of orders

= $330,800 ÷ 5,400 orders = $61.26 per order