71)

Assume a companys activity-based costing system included three expenses: Vehicle operating expenses, $300,000; Vehicle depreciation, $130,000; and Customer service salaries, $185,000. These costs were consumed by four activities as follows:

	Travel			Deliveries			Customer Service			Other			Total
Vehicle operating expenses	45	%		40	%		10	%		5	%		100	%
Vehicle depreciation	40	%		50	%		0	%		10	%		100	%
Customer service salaries	20	%		30	%		35	%		15	%		100	%

How much of the companys total costs should not be allocated to customers when analyzing customer profitability?

Multiple Choice

• $82,000

• $37,000

• $55,750

• $73,250

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