Question
3 Assume a company's activity-based costing system includes three activities with the following activity rates: Activity Cost Pool Travel Deliveries Customer service Activity Rate
3 Assume a company's activity-based costing system includes three activities with the following activity rates: Activity Cost Pool Travel Deliveries Customer service Activity Rate $ 2 per mile driven $ 50 per delivery $ 22 per phone call Two of the company's many customers include Customer A and Customer B. These two customers consumed the company's activities as follows: Travel (number of miles driven) Deliveries (number of deliveries) Customer service (number of phone calls) Total Expected Activity Customer A 260 Customer B 250 15 20 12 How much cost would be assigned from the Travel activity to Customer A?
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