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9 Activity-Based Costing (E6-3 adapted) (25 points) AEBH Company operates a fleet of delivery cars. The company's Activity-Based Cost (ABC) sys has three activity cost
9 Activity-Based Costing (E6-3 adapted) (25 points) AEBH Company operates a fleet of delivery cars. The company's Activity-Based Cost (ABC) sys has three activity cost pools: (1) Travel; (2) Customer Service; and (3) Other. The activity measu are: (1) miles driven; (2) number of customers; and (3) none, since it represents an Organization- Sustaining-Activity. The following costs have been assigned to Cost Pools using the ABC systems Driver wages Vehicle operating expense Customer representation Administrative expenses $700,000 See below + $560,000 = $700,000 times 80% 300,000 200,000 400,000 Total $1,600,000 ======== The above costs have been allocated to ABC cost pools based on the following percentages Driver wages Vehicle operating expense Customer representation Administrative expenses Allocation Percentages Travel Customer Service 80% 10% 90% 80% 10% 10% Other 10% 10% 10% 80% 10% Incomplete Cost Pool Dollar Amounts Worksheet Travel Customer Service Other Driver wages (see above) $560,000* $ 70,000 $70,000 270,000 ng expense Vehicle operating expense 20,000 Customer representation 40,000 Administrative expenses $890,000 Total Expected Activity Measures from the beginning of the period are: TRAVEL Expected miles driven 500,000 miles CUSTOMER SERVICE Expected number of customers 10,000 custom Required 1. Complete the "Incomplete Cost Pool Dollar Amounts worksheet she ? Determine the activity rate for the Travel; and Customer Service po Latit rate for C
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