Assume a companys activity-based costing system included three expenses:

• Vehicle operating expenses, $300,000
• Vehicle depreciation, $140,000
• Customer service salaries, $210,000.

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 Other activities?

Multiple Choice

• $112,000

• $42,000

• $60,500Correct

• $80,500