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Assume a company's activity-based costing system included three expenses: Vehicle operating expenses, $300,000; Vehicle depreciation, $140,000; and Customer service salaries, $180,000. These costs were consumed
Assume a company's activity-based costing system included three expenses: Vehicle operating expenses, $300,000; Vehicle depreciation, $140,000; and Customer service salaries, $180,000. These costs were consumed by four activities as follows: Vehicle operating expenses Vehicle depreciation Customer service salaries Travel Deliveries 45% 40% 40% 50% 20% 30% Customer Service 10% 0% 35% Other 5% 10% 15% Total 100% 100% 100% How much total cost (including all three expenses) would be allocated to the Travel activity? Multiple Choice $247,000 u $217,000 () $227,000 O $197,000 ( 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 Customer B 300 250 15 5 20 12 If the company earned $2,300 in revenue serving Customer A, then what is the customer margin for this customer? Multiple Choice O $610 $580 O $510 O $680 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 Customer B 300 250 15 5 20 12 If the company earned $1,150 in revenue serving Customer B, then what is the customer margin for this customer? Multiple Choice O $176 O O $136 $116 O $156
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